Caesars Entertainment (CZR) Mentioned Positively at Deutsche Bank: 'continue to believe CZR shares reflect a compelling risk-reward'

Deutsche Bank analyst Carlo Santarelli reiterated a Buy rating and $60.00 price target on Caesars Entertainment (NASDAQ: CZR)

The analyst comments "We are lowering our 4Q23 estimates for CZR, with reduced forecasts across each of the three focal segments, Las Vegas, Regional, and Digital. Given color around F-1, sluggish regional results through November, and well documented hold issues on the OSB side for the industry, we don't expect our revisions to come as a surprise to the investment community, and we expect Consensus forecasts to migrate lower in the coming weeks. Recall, CZR has announced it will release earnings on February 20. Given the 2025 maturities, and an improved debt market environment, we would not be surprised if results accompanied a refinancing, should one commence, prior to the scheduled EPS date, as was the case last year, when CZR pre-announced results on 1/23/23. We continue to believe CZR shares reflect a compelling risk-reward, in the absence of a deterioration in macro economic conditions, with shares offering a 15% free cash flow yield on our current 2025, below Consensus, forecasts. We expect healthy debt / financial leverage reduction to accrue to equity holders, which, when coupled with low expectations for fundamental performance in 2024, creates what we believe to be a favorable setup. As such, we maintain our Buy rating and our $60 price target."

For an analyst ratings summary and ratings history on Caesars Entertainment click here. For more ratings news on Caesars Entertainment click here.

Shares of Caesars Entertainment closed at $45.00 yesterday.

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