Optimistic Analyst On Casino Of The Century Amid Market Chaos
Optimistic Analyst On Casino Of The Century Amid Market Chaos
Blog Article
Century Casino posted a deficit on April 10 after higher-than-expected U.S. consumer price index (CPI) figures were released, and it expressed concern about continued inflation. However, one analyst remains optimistic about the company's outlook despite the market's response.
Macquarie Analyst Sees 53% Rise In Century Casino
In a recent report to clients, Macquarie analyst Chad Beyon raised Century Casino from "neutral" to "outperform" and set a price target of $5 per share. That represents a potential gain of nearly 53% from its current closing price of $3.27. Beyon believes the recent sale of Century shares, which has fallen 32% since the end of last year, is unfair.
While the broader market has edged higher, Century Casino's stock price has fallen significantly, making it the cheapest operating company in the coverage world for Macquarie. Bjorn says this undervaluation is due in particular to market misconceptions about the structure of Century Casino's property ownership.
The Century Casino, which operates primarily in local markets, has faced headwinds but also has significant growth potential. Bjorn predicts the company will achieve $700 million in earnings next year with $168 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
Notably, Century Casino can generate 85 cents per share of free cash flow, which is an impressive achievement given its current market cap of $101 million.
The analyst identifies several catalysts that could drive a rebound in Century Casino, including the opening of Riverview, the reauthorization of Poland, and the completion of Carothersville. Additionally, recent acquisitions of Rocky Gap and Nuggets are expected to contribute to medium-term growth.
Strategic Move To Push Casino Of The Century Amid Leverage Issues
Despite concerns about increased leverage from expansion plans, Bjorn remains confident in Century Casino's ability to deliver, marking the largest one-year deleveraging opportunity in Macquarie's coverage.
The company's renovation projects and strategic acquisitions are expected to generate attractive revenue and position Century Casino as a unique value and growth opportunity for the market.
Century Casino, in particular, reported strong fourth-quarter and full-year 2023 results, with adjusted EBITDA and net operating revenue increasing noticeably.
Co-CEOs Erwin Heitzman and Peter Chinger said their expansion efforts and successful acquisition strategy in the U.S. are headed for a bright future, despite a slight decline in operating profit this year. However, investors may have to exercise patience as the revival of Century Casino is expected to be a story in 2025. However, with a strong earnings outlook and potential catalysts on the horizon, the company's long-term outlook looks promising. 카지노사이트 모음