Churchill Downs: Strong Q1 Performance and Strategic Capital Management Justify Buy Rating

Analyst David Katz of Jefferies maintained a Buy rating on Churchill Downs (CHDN – Research Report), retaining the price target of $160.00.

David Katz has given his Buy rating due to a combination of factors including the company’s strong financial performance and strategic decisions. Churchill Downs reported first-quarter results that exceeded both Jefferies’ and the Street’s expectations in terms of revenue and adjusted EBITDA, particularly in the Gaming and TwinSpires segments. This solid performance underlines the company’s operational strength.
Additionally, the decision to defer certain large-scale capital projects, such as the Skye and infield projects, is seen as a prudent move given the current macroeconomic uncertainties and the company’s elevated leverage. This strategic pause allows Churchill Downs to focus on completing smaller, high-return projects like the renovations of the Finish Line Suites and The Mansion, which are expected to be completed by April 2026. These factors combined suggest a positive outlook for the company’s shares, justifying the Buy rating.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $157.00 price target.