Imperial Capital Raises Price Target on Churchill Downs (CHDN) Ahead of 3Q Report
- Wall Street falls as post-election winners lag
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Big 5 Sporting Goods (BGFV) Q4 Comps Rise 3.1%; Guides Q4 Above the Street
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Imperial Capital reiterated an Outperform rating on Churchill Downs (NASDAQ: CHDN), and raised the price target to $165.00 (from $145.00), ahead of the company's 3Q earnings report. For the third quarter, Imperial expects Churchill Downs to report a decline of 7.1% in EBITDA due entirely to the company continuing to invest in its Big Fish Games segment.
Analyst Gregg Klein commented, "We are maintaining our Outperform rating on CHDN shares while raising our one-year price target to $165 from $145, approximately 16% above the recent share price. The company is being valued at an 8.3x total enterprise value, based on our 2017 earnings estimates, which is slightly below the mean of the select gaming comparables that we analyze. We are valuing the CHDN shares on a sum-of-the-parts analysis, with multiples ranging from 7.5x for its casino division to 11.0x for Big Fish Games. Our one-year price target of $165 per share values the company at 9.0x our 2017E earnings, which we think is appropriate."
Shares of Churchill Downs closed at $142.39 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: JPMorgan Downgrades OneMain (OMF) to Neutral
- Instinet Upgrades RPC Inc. (RES) to Buy
- FBR Capital Remains Sidelined on Comerica (CMA) Following 4Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesEarnings, Imperial Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!