Truist Securities downgrades Golden Entertainment stock on Strat weakness

Published 16/07/2025, 12:44
Truist Securities downgrades Golden Entertainment stock on Strat weakness

Investing.com - Truist Securities downgraded Golden Entertainment (NASDAQ:GDEN) from Buy to Hold and lowered its price target to $34.00 from $36.00 on Wednesday. The casino operator, currently trading at a P/E ratio of 78.32x, has shown strong returns in recent months according to InvestingPro data.

The downgrade comes as Truist reduced its Q2 EBITDA estimates by 5% due to weakness at the Stratosphere property, positioning its forecast 4% below consensus estimates.

Truist had previously anticipated 2025 would mark an inflection point with year-over-year EBITDA growth for the casino and entertainment company.

Instead, the firm now projects a 4% contraction in EBITDA for 2025, lowering its estimate by 4%, which stands 2% below Street consensus.

The new $34 price target is based on approximately 7x Truist’s 2026 EV/EBITDA estimate for Golden Entertainment, compared to its current EV/EBITDA multiple of 9.43x.

In other recent news, Golden Entertainment reported its first-quarter earnings for 2025, falling short of market expectations in both earnings per share (EPS) and revenue. The company posted an EPS of $0.09, below the forecasted $0.14, and revenue of $160.84 million, which did not meet the anticipated $164.98 million. Despite these misses, the company remains optimistic about future quarters, citing positive trends in occupancy at The Strat. In addition, Golden Entertainment held its annual shareholder meeting, resulting in the approval of an amended incentive plan and the election of directors, including Blake L. Sartini and Andy H. Chien. The shareholders also approved the compensation of the company’s named executive officers on a non-binding advisory basis. Furthermore, JMP reiterated its Market Outperform rating on Golden Entertainment, maintaining a $36.00 price target. The firm noted a new tax bill that could positively impact the company’s revenue in the first and second quarters.

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