TD Cowen Maintains Buy Rating on Caesars Entertainment (CZR) Stock

Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 29, analyst Lance Vitanza of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $40.00. The analyst’s rating is supported by a combination of factors influencing Caesars Entertainment, Inc. (NASDAQ:CZR)’s performance. Despite Q3 2025 results falling short of expectations, there are some positive indicators, believes the analyst. Notably, in Q3 2025, the company’s GAAP net revenues came in at $2.9 billion, and GAAP net loss amounted to $55 million.

As per the analyst, the temporary softness in Las Vegas is projected to see improvement as group bookings continue to increase for Q4. Furthermore, the regional markets have been exhibiting healthy momentum, and Caesars Entertainment, Inc. (NASDAQ:CZR)’s refined marketing strategies can help FCF growth.

Caesars Entertainment, Inc. (NASDAQ:CZR), at the time of releasing Q3 2025 results, stated that its regional portfolio posted net revenues and adjusted EBITDA growth, thanks to the consistent operating trends and positive returns from its capital projects.

JDP Capital Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Caesars Entertainment, Inc. (NASDAQ:CZR) – In terms of upside it is not hard to see $80 or $90 per share for CZR in present value using a simple breakup value analysis (200% to 300%+ upside) from today’s $25 price. Although Vegas and regional brick and mortar casino revenue declined by 1% in 2024, we are invested in CZR for the unrecognized earnings power of the high margin, high return on capital online gaming business. As the largest and arguably most investor-friendly gaming and hotel business in the US, CZR is benefiting from state-by-state legalization of online gaming. In 2024 CZR’s online gaming business (Caesars Palace and Horseshoe Apps) grew 20% to 1.2 billion with EBITDA up 207% to $117 million over 2023. In 4Q 2024, iGaming revenue grew 65% on top of 54% growth in 2023. Helping to fuel 2025 online gaming growth, Caesars is launching a live, iCasino in-app product in Michigan and New Jersey following legalization in those states. CEO Tom Reeg is confident that the online gaming business is on track to achieve $500 million in EBITDA as planned. Once achieved, the online business would be worth well in excess of the entire company current market cap of $5 billion. Setting aside this potential, CZR should earn over $1 billion in after-tax free cash flow in 2025 implying a 20%+ equity yield on the stock today. Caesars recently expanded its board to include two Carl Ichan-appointed members. The stock was down over 25% in the first quarter.”

While we acknowledge the potential of CZR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.