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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Churchill Downs (NASDAQ:CHDN) to $136.00 from $134.00 while maintaining an Outperform rating. The company, currently valued at $7.63 billion, boasts a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial health.
The firm’s analysis focused on Churchill Downs’ Virginia operations, noting that the Rose gaming facility generated $12.5 million in revenue in May, compared to $10.98 million in April and $12 million in March. May benefited from one additional weekend day year-over-year, with weekend win-per-unit-per-day estimated at approximately $325+ versus weekday figures of around $180. This performance contributes to the company’s impressive 11.75% revenue growth over the last twelve months, with total revenue reaching $2.79 billion.
Same-store sales across Virginia operations, excluding Rose and Dumfries locations, increased 5.1% year-over-year in May. This follows growth of 5.7% in April, 1.2% in March, and a decline of 6.6% in February.
The Richmond location showed improvement with revenue increasing $1.5 million sequentially in May. Churchill Downs is currently expanding this facility, adding gaming machines with an estimated 400-450 units expected to be in place by late summer.
Mizuho has revised its quarterly estimates, now projecting Rose to generate $35.5 million in revenue for the second quarter, up from its previous estimate of $35 million, citing what appears to be more solid low-single-digit growth. With three analysts recently revising earnings estimates upward and the stock currently trading below its InvestingPro Fair Value, Churchill Downs presents an interesting opportunity for investors seeking detailed analysis in the gaming sector.
In other recent news, Churchill Downs has announced a significant acquisition, agreeing to purchase a 90% equity stake in the Casino (EPA:CASP) Salem project in southern New Hampshire for $180 million. This transaction will be funded through the company’s existing revolving credit facility. Ahead of its second-quarter earnings report, Stifel has raised its price target for Churchill Downs to $133, maintaining a Buy rating. JMP Securities has reiterated its Market Outperform rating with a price target of $138, citing potential growth catalysts for the company. Additionally, JPMorgan has initiated coverage with an overweight rating and a price target of $116, suggesting a potential 17% upside. These developments underscore a positive outlook from analysts, as they highlight the company’s strategic moves and potential for growth. The upcoming earnings report is anticipated by investors, with a conference call scheduled to discuss the results.
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