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On Tuesday, JMP Securities analysts maintained a bullish stance on Caesars Entertainment (NASDAQ:CZR), reiterating their Market Outperform rating and a $45.00 price target. This aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong buy consensus with analyst targets ranging from $28 to $62. Currently trading at $27.69, the stock appears slightly undervalued according to InvestingPro’s Fair Value model. The analysts highlighted that Caesars Entertainment has not encountered any significant macroeconomic challenges impacting its performance as it heads into the second quarter. The company’s premium segment shows robust activity, and its strategic location on the Las Vegas center strip remains advantageous.
Caesars Entertainment anticipates facing more challenging comparisons in the second half of 2025 due to past high hold percentages in Las Vegas. Management has expressed that the potential for same-store EBITDAR growth will largely hinge on table hold rates, suggesting that underlying business fundamentals and booking trends are solid. The fourth quarter of 2025 is expected to see a boost from a strong convention lineup, and the first half of 2026 is poised for earnings tailwinds, thanks in part to events like CON/AGG and State Farm.
Regional operations, which account for roughly 45% of the company’s estimated 2025 EBITDAR, echo the positive sentiments shared during the first quarter results. The New Orleans market continues to provide a significant boost, with trailing three-month gaming revenue up 27% compared to the previous year. However, challenges such as the flooding at Harrah’s Metropolis, which led to a 45% decline in April, and renovations at Harveys Lake Tahoe are expected to pose headwinds for the quarter. Consequently, JMP Securities has slightly lowered their regional earnings estimate.
The latest online trends also indicate a favorable outlook for Caesars Entertainment. Quarter-to-date, the company has seen a modest increase in handle, following a 7% decline in the first quarter of 2025 and a 15% drop in the fourth quarter of 2024. This suggests Caesars is effectively optimizing its customer base towards profitability. For deeper insights into Caesars’ financial health and growth potential, including 8 additional exclusive ProTips and comprehensive valuation analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Caesars Entertainment reported mixed financial results for the first quarter of 2025, with earnings per share (EPS) at -$0.54, missing the forecast of -$0.17, and revenue reaching $2.79 billion, slightly below the expected $2.82 billion. Despite these misses, the company’s digital segment showed significant growth, with net revenue increasing by 19% year-over-year. Analysts from CFRA and Stifel have adjusted their outlooks on Caesars, with CFRA downgrading the stock to Hold and setting a price target of $30, while Stifel lowered its price target to $42 but maintained a Buy rating. Citizens JMP, however, reiterated its Market Outperform rating and maintained a $45 price target, highlighting the company’s strong first-quarter performance. Caesars’ management expressed optimism about the U.S. consumer market, although concerns about the company’s debt levels and broader macroeconomic conditions remain. The company continues to focus on growth in its digital segment and plans for debt reduction and potential monetization of its digital platform. Caesars’ balance sheet challenges, particularly high interest expenses, are noted as potential obstacles to future performance.
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