Caesars Entertainment (CZR) PT Lowered to $36 at Stifel, Buy Rating Reiterated on High FCF Yield

Stifel analyst Steven Wieczynski lowered the price target on Caesars Entertainment (NASDAQ: CZR) to $36.00 (from $39.00) while maintaining a Buy rating.

The analyst commented, "When a company has a 20%+ FCF yield, normally you think something is fishy, meaning estimates are unrealistic. However, that doesn’t seem to be the case right now with CZR as we believe consensus estimates are set in a position where they look somewhat realistic/ beatable. We know a lot of investors are sitting there shaking their heads in disbelief and not believing a word we are saying. And look, we totally get the skepticism that is out there with this company, and it’s almost like we are “The Boy Who Cried Wolf”. Investors have heard repeatedly that things were getting better and “help was on the way”, only to be disappointed time and time again. But unless you think the Strip is going to completely rollover from here and massively deteriorate, we think the FCF (> $4/share in 2026) is “real” and not being properly ascribed at current trading levels."

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