Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - Stifel raised its price target on Caesars Entertainment (NASDAQ:CZR) to $45.00 from $42.00 on Wednesday, while maintaining a Buy rating on the casino operator’s stock. Currently trading at $28.17, the stock sits well below analysts’ average price target, with estimates ranging from $28 to $62. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The price target increase comes as Caesars’ digital business shows signs of exceeding its $500 million target, despite challenges in other segments of the company’s operations. With annual revenue of $11.3 billion and EBITDA of $3.6 billion, Stifel noted that Caesars has struggled to achieve simultaneous growth across all three of its business segments: Las Vegas Strip properties, regional casinos, and digital operations.
While the digital segment has shown improvement, Stifel identified concerns about the health of Strip properties and margin pressures in regional operations. The firm expects the summer softness on the Strip to be temporary and sees signs of stabilization in the FIT (free independent traveler) segment.
Stifel expressed optimism about Caesars’ regional casino business, predicting margin improvements once the company completes its reinvestment in the Total (EPA:TTEF) Rewards loyalty program. The firm also highlighted Caesars’ expanding free cash flow generation and management’s view that the stock is undervalued when trading in the $20s.
Debt reduction remains a key focus for Caesars, with Stifel noting potential future monetization of the company’s digital platform as an additional opportunity for the casino operator. InvestingPro data reveals that the company operates with a significant debt burden, though analysts expect it to return to profitability this year. For deeper insights into Caesars’ financial health and more exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Caesars Entertainment reported its second-quarter earnings for 2025, showing a notable miss in earnings per share (EPS) while slightly surpassing revenue expectations. The company posted an EPS of -$0.39, significantly below the forecasted $0.06, representing a surprise of -750%. However, Caesars achieved revenue of $2.91 billion, exceeding the anticipated $2.86 billion. TD Cowen reiterated its Buy rating and maintained a $40.00 price target, citing strength in Caesars’ digital segment, which achieved record quarterly EBITDA. On the other hand, Macquarie lowered its price target to $40.00 from $45.00, attributing the change to softness in Las Vegas operations and one-time challenges in the Regional segment. Similarly, JMP Securities reduced its price target to $43.00 from $45.00, maintaining a Market Outperform rating, and noted that despite the earnings miss, the foundation for free cash flow remains solid. These recent developments highlight the mixed performance and varying analyst perspectives on Caesars Entertainment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.