Citi is Neutral on Caesars (CZR) Due to Concerns Over Aggressive Promotions Replacing High-Margin Strategy

Caesars Entertainment Inc. (NASDAQ:CZR) is one of the most promising stocks with huge upside potential. On November 21, Citi initiated coverage of Caesars with a Neutral rating and $23 price target. This sentiment surrounding the Neutral rating was announced as the firm believes that investors are concerned that Caesars Entertainment is replacing its high-margin strategy with more aggressive promotions.

In its Q3 2025 earnings report, which was released earlier, Caesars Entertainment disclosed achieving consolidated net revenues of $2.87 billion, which was both a modest decline of 0.17% year-over-year and also $25.34 million below guidance.

The company’s Regional Segment saw a net revenue growth of 6% year-over-year, driven by strong returns in Danville and New Orleans, and same-store growth from strategic reinvestment in the Caesars Rewards customer database. The Digital Segment reported net revenue of $311 million due to strong core volume growth in both sports and iCasino, with iCasino net revenue growing 29% due to increased volume and average monthly active users.

Caesars Entertainment Inc. (NASDAQ:CZR) operates as a gaming and hospitality company. The company owns, leases, brands, or manages domestic properties in 18 states with slot machines, video lottery terminals, and e-tables, and hotel rooms, as well as table games, including poker.

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