UPDATE: Morgan Stanley Upgrades Caesars Entertainment (CZR) to Overweight
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Morgan Stanley analyst Thomas Allen upgraded Caesars Entertainment (NASDAQ: CZR) from Equalweight to Overweight with a price target of $113.00 (from $92.00).
The analyst comments "Based on our recent channel checks, Vegas (45% of mix) is recovering faster & stronger than perceived. Regional casino markets (55% of mix) are recovering even faster but this is better known by the Street. CZR's acquisition of William Hill positions it well to capture US sports betting/iGaming market share. High leverage (9x at YE21) creates a wide risk-reward. We expect CZR to achieve >$900m of targeted synergies and grow top line faster than peers as casino markets recover. On our 2022 estimates and excluding value for its sports betting business, CZR trades at 8.9x EBITDAR, vs. 9x historical NTM avg, despite a higher mkt multiple and peers re-rating."
Shares of Caesars Entertainment closed at $88.94 yesterday.
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