JMP reiterates Market Outperform rating on Golden Entertainment stock

Published 07/07/2025, 11:46
JMP reiterates Market Outperform rating on Golden Entertainment stock

Investing.com - JMP maintained its Market Outperform rating and $36.00 price target on Golden Entertainment (NASDAQ:GDEN) stock on Monday. The target represents a 17% upside from the current price of $30.67, aligning with the broader analyst consensus that ranges from $29 to $38. According to InvestingPro data, the stock is trading near its Fair Value.

The research firm noted a new bill that allows the first $25,000 of voluntary tips to be deducted from taxes. Under this legislation, tipped employees must still pay taxes on tips as they occur, but can claim deductions when filing tax returns.

JMP analyst Jordan Bender suggested this change could lead to larger tax returns during tax season, potentially creating an uplift to revenue for the first and second quarters.

During a recent trip to Las Vegas, JMP found that gaming operators were uncertain about the financial impact of the legislation on their businesses, but the firm views it as a positive catalyst for the industry.

The tax exemption on tips is set to expire in 2028, according to the research note.

In other recent news, Golden Entertainment Inc. reported its first-quarter earnings for 2025, revealing that both earnings per share (EPS) and revenue fell short of market expectations. The company posted an EPS of $0.09, missing the projected $0.14, and reported revenue of $160.84 million, which was below the anticipated $164.98 million. Despite these financial challenges, the company maintained stable EBITDA margins in its Nevada locals casinos and observed sequential improvements in tavern EBITDA. Additionally, during its annual shareholder meeting, Golden Entertainment announced several corporate governance updates. Shareholders approved an amended incentive plan and the election of directors, including Blake L. Sartini and others. The ratification of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was also confirmed. The company’s focus on operational efficiencies and strategic stock buybacks remains a priority, as noted by executives during the earnings call. Golden Entertainment’s management expressed optimism about the upcoming quarters, highlighting positive occupancy trends at The Strat.

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