Century Casinos stock rating reiterated at Market Outperform by JMP

Investing.com - Citizens JMP has reiterated its Market Outperform rating for Century Casinos (NASDAQ:CNTY) with a price target of $3.00, representing potential upside from the current price of $2.55. According to InvestingPro data, the stock has shown strong volatility with a beta of 2.16.

The research firm maintained its positive outlook on the casino operator in a note released Friday.

JMP analyst Jordan Bender explained that the $3 price target is based on a blend of valuation metrics, specifically 4.5 times the firm’s estimated 2026 EBITDA for Century Casinos.

The valuation model also incorporates 5.5 times the company’s projected 2026 free cash flow (FCF).

Century Casinos operates gaming establishments across North America and Europe, with the firm’s analysis suggesting continued confidence in the company’s financial performance through 2026.

In other recent news, Century Casinos reported a significant miss in its Q1 2025 earnings, with revenue reaching $130.4 million, falling short of the $141.59 million forecast. The company’s earnings per share (EPS) also missed projections, posting a loss of -0.67 compared to the anticipated -0.45. These results contributed to a reduction in Century Casinos’ stock target by Citizens JMP from $4 to $3, while maintaining a Market Outperform rating. Macquarie also adjusted its price target from $5 to $4, citing the company’s consistent trend of missing consensus estimates.

Despite these challenges, Century Casinos has initiated a $3 million stock repurchase plan, aiming to enhance shareholder value. The company is also progressing with its Caruthersville project, which has shown a solid performance, offering a bright spot in its portfolio. Stifel analysts have reiterated a Buy rating with a $4 target, viewing Century Casinos as a high-risk, high-reward opportunity, contingent on successful operational enhancements.

Additionally, the company is moving forward with the divestiture of its Poland operations, which is reportedly gaining momentum. Century Casinos is also focusing on cost-cutting measures, expected to yield $1 million in annual savings, and is optimistic about its long-term prospects. These strategic moves reflect the company’s efforts to navigate through current market pressures and optimize its operations.

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