Jefferies analyst David Katz reiterated a Buy rating on Caesars Entertainment (CZR – Research Report) today and set a price target of $50.00.
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David Katz has given his Buy rating due to a combination of factors influencing Caesars Entertainment’s potential future performance. Although there are short-term challenges, particularly with the regional gaming portfolio and digital business segment impacted by recent unfavorable sporting outcomes, Katz remains optimistic about improvement in these areas by 2025. The digital segment is expected to grow with better iGaming performance and reduced promotional costs, while the regional portfolio may benefit from a more concentrated competitive landscape and new projects in select markets.
Furthermore, Caesars’ Las Vegas operations are poised to maintain strength, supported by a robust presence on The Strip and a recovering convention business, which contributes to stable growth expectations. The company’s management is also focusing on reducing leverage, with interest expenses adjusted downward, which could further improve financial health. Increased valuation multiples and an upgraded price target reflect Katz’s confidence in Caesars’ ability to achieve accelerated free cash flow and improved stock performance in the coming years.
In another report released on February 4, TD Cowen also maintained a Buy rating on the stock with a $48.00 price target.