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On Friday, Citizens JMP analyst Jordan Bender revised the price target for Full House Resorts (NASDAQ: FLL) to $5.00, down from the previous $6.00, while maintaining a Market Outperform rating. According to InvestingPro data, the stock has experienced significant volatility, dropping nearly 14% in the past week and trading at $4.15, with analyst targets ranging from $4.75 to $7.00. Bender’s assessment reflects a cautious outlook on the property’s near-term performance, anticipating a slower ramp-up in activity and earnings that may fall short of management’s expectations of approximately $10 million to $15 million for the year 2025.
Full House Resorts has been implementing changes at its property aimed at improving margins following a seasonally slow period. Despite the lower price target, there are positive developments within the company. The temporary casino, which contributed 60% to the company’s EBITDA in 2024, reported $6.7 million in EBITDA for the quarter and $29 million for the full year. InvestingPro analysis shows the company’s last twelve months EBITDA stands at $37.1 million, though financial health indicators suggest challenges with cash burn and debt management.
The company’s performance at the start of the year showed promising signs, with gaming revenue in January up 34% year-over-year. The trailing twelve months (TTM) revenue is nearing the management’s goal, being just $6 million shy of the $120 million run-rate gaming revenue target.
Full House Resorts ended the previous year with a cash balance of $40 million, although leverage remained high at 9 times. The company is expected to reduce its debt throughout the year and generate positive free cash flow for the first time in several years. InvestingPro data reveals concerning metrics, including a debt-to-equity ratio of 10.2x and short-term obligations exceeding liquid assets. For deeper insights into Full House Resorts’ financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. Bender notes that the upcoming financing should act as a catalyst for the company’s stock, providing investors with a clearer picture of the potential returns from the American Place project.
The analyst expressed confidence in the long-term potential of Full House Resorts, citing the temporary casino’s gaming revenue nearing the targeted levels and the anticipated substantial EBITDA generation from the final product.
In other recent news, Full House Resorts Inc (NASDAQ:FLL) reported its fourth-quarter 2024 financial results, revealing a challenging period with earnings per share (EPS) of -$0.35, missing the forecasted -$0.23. Revenue also fell short of expectations, coming in at $72.96 million compared to the anticipated $75.78 million. Despite these setbacks, the company noted significant revenue growth at its American Place property, which saw a 42% increase year-over-year. Full House Resorts is actively working on expanding its operations, particularly in Colorado and Illinois, and is focusing on improving operational efficiency and margins.
In addition to financial updates, Full House Resorts is targeting $100 million in revenues for its American Place property and aims to achieve an EBITDA of $10-15 million for its Chamonix property in 2025. Analysts from Craig Hallum Capital Group and Citizens have shown interest in the company’s strategic focus on executing existing projects rather than pursuing new acquisitions. The company has no current plans for equity financing, as confirmed during an earnings call. These recent developments highlight Full House Resorts’ efforts to navigate a competitive market while seeking growth opportunities in underpenetrated areas.
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