Churchill Downs stock rating reiterated at Market Outperform by JMP

Investing.com - JMP Securities has reiterated its Market Outperform rating on Churchill Downs (NASDAQ:CHDN) with a price target of $142.00. According to InvestingPro data, the company currently trades at $95.98 and shows signs of being undervalued based on its Fair Value analysis.

The firm maintained its positive outlook on the racetrack and gaming company, noting that Churchill Downs is currently trading at 9.4x 2027 estimated EBITDA, which is below its long-term average of 11.7x. The company’s current EV/EBITDA ratio stands at 12.04x, with a robust EBITDA of $913 million over the last twelve months.

JMP identified several potential catalysts that could drive the stock’s performance ahead of the 2026 Kentucky Derby, including historical racing machines (HRMs), capital allocation decisions, and project return on invested capital (ROIC).

The firm expects these factors to contribute to strong year-over-year growth for Churchill Downs as the company approaches its signature racing event in 2026.

Churchill Downs operates the iconic Kentucky Derby horse race along with multiple racetracks, casinos, and gaming properties across the United States.

In other recent news, Churchill Downs Incorporated reported its second-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share of $2.99, exceeding the forecasted $2.96, which represents a 1.01% surprise. Additionally, Churchill Downs reported revenue of $934.4 million, outperforming the anticipated $919.53 million, marking a 1.62% surprise. These figures highlight a strong performance for the quarter, reflecting positively on the company’s financial health. Investors and analysts have taken note of these developments, as they indicate robust operational results. This recent earnings announcement is a key highlight for Churchill Downs, offering insight into the company’s recent financial performance.

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