JMP Maintains Bullish View on Caesars Entertainment (CZR) Despite Q2 Headwinds

Analysts at JMP Securities remain optimistic about Caesars Entertainment, Inc. (NASDAQ:CZR), restating their Market Outperform rating and $45 price target for the company on May 27. As Caesars Entertainment enters the second quarter, analysts have pointed out that the company has not faced any major macroeconomic obstacles that would have impacted its performance.

The company's regional operations, which contribute around 45% of its projected 2025 EBITDAR, support the upbeat sentiment stated during the first quarter's results. With trailing three-month gaming revenue up 27% from the prior year, the New Orleans market remains a notable boost. However, complications like the Harveys Lake Tahoe renovations and the flooding at Harrah's Metropolis, which caused a 45% drop in April, are anticipated to cause issues for the quarter.

That said, Caesars Entertainment, Inc. (NASDAQ:CZR) appears to have a promising future, based on recent online trends. After declining 7% in the first quarter of 2025 and 15% in the fourth quarter of 2024, the company's handle has increased somewhat this quarter, indicating that Caesars is effectively utilizing its clientele to boost profitability.

While we acknowledge the potential of CZR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CZR and that has 100x upside potential, check out our report about the cheapest AI stock.

Disclosure: None.