Canaccord Genuity Morning Coffee on Caesars Entertainment (CZR): Yo-leven!
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Price: $29.64 +0.17%
Rating Summary:
7 Buy, 22 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
7 Buy, 22 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Canaccord Genuity Morning Coffee on Caesars Entertainment (Nasdaq: CZR): Yo-leven!
Credit Suisse initiated bullish coverage on Caesars Entertainment, calling it a leveraged play on a U.S. consumer recovery with potential upside drivers coming from execution of its bricks and mortar growth pipeline in Las Vegas and regional markets. Given Strip and regional market exposure (83% of 2012 Property EBITDA) plus cost reductions through its Project Renewal program ($269 million in 2011, with $198 million more per year anticipated), the brokerage says Caesars is a pure play on a consumer recovery. The company’s in-progress pipeline in Las Vegas, Ohio and Maryland provides growth middecade, while Credit Suisse believes it could benefit from a number of additional opportunities in Ohio, Kentucky and Massachusetts. Among bricks and mortar peers, the brokerage believes Credit Suisse has established itself as a proactive leader in online gaming and is ready to monetize if U.S. online gaming is approved. With the World Series of Poker brand, a rapidly growing social/mobile gaming platform in Playtika, and more than 40 million Total Rewards members, Credit Suisse says that Caesars has a significant jump on the competition. They estimate online poker could be worth $8-21 per share for Caesars, if legalized.
Credit Suisse initiated bullish coverage on Caesars Entertainment, calling it a leveraged play on a U.S. consumer recovery with potential upside drivers coming from execution of its bricks and mortar growth pipeline in Las Vegas and regional markets. Given Strip and regional market exposure (83% of 2012 Property EBITDA) plus cost reductions through its Project Renewal program ($269 million in 2011, with $198 million more per year anticipated), the brokerage says Caesars is a pure play on a consumer recovery. The company’s in-progress pipeline in Las Vegas, Ohio and Maryland provides growth middecade, while Credit Suisse believes it could benefit from a number of additional opportunities in Ohio, Kentucky and Massachusetts. Among bricks and mortar peers, the brokerage believes Credit Suisse has established itself as a proactive leader in online gaming and is ready to monetize if U.S. online gaming is approved. With the World Series of Poker brand, a rapidly growing social/mobile gaming platform in Playtika, and more than 40 million Total Rewards members, Credit Suisse says that Caesars has a significant jump on the competition. They estimate online poker could be worth $8-21 per share for Caesars, if legalized.
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