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Investing.com - Stifel raised its price target on Churchill Downs (NASDAQ:CHDN) to $133.00 from $130.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The company, currently valued at $7.7 billion, has demonstrated strong financial health with a perfect Piotroski Score of 9 and trades at an attractive P/E ratio relative to its growth potential, according to InvestingPro analysis.
Churchill Downs is scheduled to report its Q2 2025 results after market close on July 23, followed by a conference call on July 24 at 9 AM ET. The company has maintained strong revenue growth of 11.75% over the last twelve months, though InvestingPro data shows 2 analysts have recently revised their earnings expectations downward for the upcoming period. For deeper insights into Churchill Downs’ financials and 12 additional exclusive ProTips, consider exploring InvestingPro’s comprehensive research report.
Stifel adjusted its model, lowering Q2 2025 estimated adjusted EBITDA by 2%, primarily reflecting a more gradual margin ramp at The Rose development and forced removals of historical horse racing (HHR) machines in Louisiana.
The firm noted that Churchill Downs shares have underperformed year-to-date due to concerns about Kentucky Derby fundamentals and the gradual ramp of the company’s $460 million development called The Rose.
Stifel sees potential catalysts for improved sentiment at the Q2 earnings report, with L&H results likely showing sequential improvement for The Rose, while resumed Churchill Downs Racetrack development projects would signal confidence in Derby fundamentals.
In other recent news, Churchill Downs has been the focus of various analyst assessments and strategic developments. The company has seen its stock rating reiterated at Market Outperform by JMP Securities, which adjusted its price target to $138.00 after discussions with management led to revised earnings estimates. This follows the removal of Historical Racing Machines in Louisiana, which is expected to impact the company’s EBITDA by $10 million to $15 million annually. Meanwhile, JPMorgan initiated coverage with an overweight rating and a $116.00 price target, citing overly negative market sentiment and suggesting a favorable entry point for investors. Stifel analysts also maintained a Buy rating with a $130 price target, expressing confidence in the company’s strategic outlook and growth potential, particularly with the Kentucky Derby and The Rose Dumfries.
Truist Securities reaffirmed its Buy rating with a $150 price target, despite acknowledging a $2 million to $4 million decrease in EBITDA for the 151st Derby due to adverse weather. The firm emphasized the record-setting nature of the Derby Week and the potential for future growth, buoyed by pricing adjustments and the renewal of the NBC contract. These developments highlight Churchill Downs’ ongoing strategic maneuvers and analyst perspectives, painting a complex picture of its current financial landscape. As the company navigates these challenges and opportunities, its next earnings report will be closely watched for further insights.
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