Street Calls of the Week
Investing.com - Citizens analyst Jordan Bender has reiterated a Market Perform rating on Bally’s Corp (NYSE:BALY), which currently trades at $12.06. According to InvestingPro data, the company faces significant financial challenges, with analyst targets ranging between $10-12.
The analyst noted that capital expenditure for the Chicago casino project is expected to begin in the second half of 2025, with remaining funds to be spent in 2026 and potentially extending into 2027.
Citizens’ financial model for Bally’s includes several funding projects: the Ione casino in Northern California, Belle of Baton Rouge, and Marquette.
The model excludes the Republic Sonoma County tribal funding redevelopment, the Oakland A’s stadium, and Penn’s Ameristar project, as these are either at the tenants’ discretion or have unclear timing for GLPI’s capital contribution.
The Rhode Island sale-leaseback is also excluded from the model, with the analyst noting it has a late-2026 call option that could potentially be accelerated following debt restructuring by the tenant.
In other recent news, Bally’s Corporation has completed the sale of its International Interactive business to Intralot S.A., valuing the unit at €2.7 billion. This transaction provides Bally’s with €1.530 billion in cash and newly issued Intralot shares valued at €1.136 billion, making Bally’s the majority shareholder with a 58% stake in Intralot. Additionally, Bally’s has secured further commitments to its revolving credit facility, increasing it to $510 million, with an extended maturity date set for October 2028. The company also received consent from lenders for the proposed sale and leaseback of the Twin River Lincoln Casino Resort to Gaming and Leisure Properties for $735 million.
In another development, Bally’s announced plans for a new entertainment resort on the Las Vegas Strip at the former Tropicana Las Vegas site. The project, named Bally’s Las Vegas, will include luxury hotel towers, an entertainment venue, and extensive retail and dining spaces. Meanwhile, Gaming and Leisure Properties is set to acquire the real estate assets of Sunland Park Racetrack & Casino for approximately $184 million, with Truist Securities reaffirming its Buy rating and a $60.00 price target on the company. These developments highlight significant strategic moves by both Bally’s Corporation and Gaming and Leisure Properties in the gaming and real estate sectors.
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