Stifel Increases Caesars Entertainment (CZR) PT to $45, Citing Digital Growth

Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the top stocks sold by hedge funds. On July 30, Stifel reiterated a Buy rating on CZR and lifted the target price to $45 from $42.

Caesars’ upward price target revision is a result of the strong performance in its digital division, which appears poised to outperform its $500 million revenue benchmark. This growth is in contrast to ongoing difficulties in other segments of the company. Despite generating $11.3 billion in annual revenue and $3.6 billion in EBITDA, Stifel highlighted that CZR has faced challenges in achieving balanced growth across its Las Vegas Strip resorts, regional casinos, and digital operations.

However, the firm believes the slowdown on the Strip during the summer is likely temporary and sees early signs of recovery in the free independent traveler (FIT) segment.

Stifel showed confidence in Caesars’ regional casinos, expecting profit margins to improve once the company finishes investing in its Total Rewards loyalty program. The firm also mentioned that Caesars is generating more free cash flow and noted that the management believes the stock is undervalued while it’s trading in the $20 range.

Caesars is still mainly focused on reducing its debt. Stifel also mentioned that the company might have a chance to make more money in the future by selling or making use of its digital platform.

Caesars Entertainment, Inc. (NASDAQ:CZR) operates gaming and hospitality properties across the United States, offering casinos, sports betting, iGaming, and hospitality services such as hotels, dining, and entertainment venues.

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