Morgan Stanley analyst Stephen Grambling maintained a Hold rating on Caesars Entertainment (CZR – Research Report) today and set a price target of $38.00.
Stephen Grambling has given his Hold rating due to a combination of factors influencing Caesars Entertainment’s current financial standing and future prospects. The company’s recent financial results showed a decline, with both revenue and EBITDA falling short of expectations, particularly in the Digital and Vegas segments. Despite these setbacks, there are positive indicators such as the completion of the Danville project and successful renovations in New Orleans, which may contribute to a more favorable outlook in 2025.
However, the growth potential from the digital sector remains uncertain, as skepticism persists regarding the sports betting segment’s performance. Additionally, with fixed costs amounting to $3 billion and free cash flow projected to yield around 13%, the stock is expected to remain stable in the near term. Investors are likely to adopt a wait-and-see approach as they assess the company’s ability to achieve top-line and free cash flow growth in the medium term.
According to TipRanks, Grambling is a 4-star analyst with an average return of 5.2% and a 61.89% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, DraftKings, and Las Vegas Sands.