Gaming and Leisure stock price target maintained at $55 by Citizens JMP

Investing.com - Citizens JMP analyst Mitch Germain has reiterated a Market Outperform rating and $55.00 price target on Gaming and Leisure (NASDAQ:GLPI). The company, currently trading at $46.63, shows strong financial fundamentals with an impressive 93.38% gross profit margin and a healthy 6.69% dividend yield. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value.

The firm noted that Gaming and Leisure had over $2 billion in capital commitments on its books as of the end of the first quarter of 2025, at a blended 8.3% yield.

These commitments are primarily comprised of a $1 billion funding commitment for the construction of Bally’s (NYSE:BALY) Chicago casino, which will be disbursed through mid-2026.

The company also has $725 million to be funded for various projects with PENN (NASDAQ:PENN), with both Bally’s and PENN representing key tenant relationships for Gaming and Leisure.

Citizens JMP highlighted that Gaming and Leisure owns 34% of Bally’s assets and 16% of PENN’s assets, underscoring the company’s significant position in the gaming real estate sector.

In other recent news, Gaming and Leisure Properties reported its first-quarter 2025 earnings, revealing a shortfall in earnings per share (EPS) compared to market forecasts. The company’s EPS stood at $0.60, missing the anticipated $0.73, while revenue was slightly below expectations at $395.2 million against a forecast of $396.27 million. Additionally, the company announced an increase in its quarterly cash dividend to $0.78 per share for the second quarter of 2025, marking a 2.6% increase from the previous year. Meanwhile, Stifel analysts downgraded Gaming and Leisure Properties from Buy to Hold, citing concerns over growth following delays in Bally’s Chicago flagship project. In a separate development, the company announced the elimination of the Senior Vice President and Chief Investment Officer position, with Matthew J. Demchyk set to depart. Despite these changes, Stifel analysts reaffirmed a Buy rating for the company, highlighting strategic investments like the $130 million Juliette project. These developments reflect ongoing adjustments and strategic initiatives within Gaming and Leisure Properties.

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