Churchill Downs acquiring Preakness rights a positive, says Jefferies

After Churchill Downs (CHDN) announced that it’s acquiring the intellectual property of the Preakness Stakes and Black-Eyed Susan Stakes for $85M, Jefferies said the company has acquired “a premier horse racing asset with visible upside potential” with a relatively limited upfront investment. The firm believes the operating upside opportunity on limited capital investment are “positives for growth and valuation,” which should be reflected in the shares between now and the earnings report on April 22 and over time. Jefferies keeps a Buy rating and $139 price target on Churchill Downs shares.