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Caesars Entertainment Inc. (CZR) is a powerhouse in the gaming and hospitality sector with a market cap of $7.28 billion. Headquartered in Reno, Nevada, the company operates a diverse portfolio of casinos, dining venues, hotels, and entertainment facilities across the U.S. Renowned for its unwavering commitment to innovation and luxury, Caesars Entertainment stands as a global leader, enchanting millions of patrons with unparalleled gaming experiences and iconic resort destinations.
Caesars Entertainment has significantly underperformed the broader market over the last year. The stock has declined 19.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.3%. In 2024 alone, the stock has lost 27.9%, compared to SPX's 11.3% gains on a YTD basis.
Narrowing the focus, CZR’s underperformance is also evident when compared to the VanEck Gaming ETF (BJK). The exchange-traded fund has declined by 4.4% YTD, while CZR has experienced a significantly more loss over the same period.
On Apr. 30, Caesars Entertainment reported lower-than-expected Q1 revenue and earnings. The stock declined by 4.7% on the day its results were released.
For the current fiscal year, ending in December, analysts expect CZR’s EPS to decline by 75% year over year to $0.23 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on two other occasions.
Among the 16 analysts covering CZR stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, and four “Holds.”
This configuration is slightly more bullish than three months ago, with 10 suggesting a “Strong Buy.”
On May 1, JMP Securities analyst Jordan Bender maintained a “Buy” rating on Caesars Entertainment with a price target of $60.00, implying a potential upside of 78.4% from current levels.
The mean price target of $54.62 represents a 62.4% premium to CZR’s current price levels. The Street-high price target of $70 suggests an ambitious upside potential of 108.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
