Churchill Downs project pause could be positive, says Citizens JMP

Citizens JMP says Churchill Downs (CHDN)’ Gaming and Live and Historical Racing segments were both impacted by weather and an unfavorable calendar in Q1, as softness across the lower-end consumer continues to drag results. Churchill is pausing longer-term projects at the track as a result of the current macro environment, which was budgeted to be $900M in total over the next several years, the analyst tells investors in a research note. Citizens believes the decision could end up proving to be a positive for the story, given the company’s leverage will decline faster than expected in 2026. It keeps an Outperform rating on Churchill Downs with a $157 price target The stock in morning trading is down 7% to $97.58.