Susquehanna upgraded Caesars Entertainment (CZR) to a Positive rating after having the casino stock slotted at Neutral. As part of its valuation call, the firm maintains that the stock’s risk-reward profile is now too attractive to ignore at $23.
Analyst Joseph Stauff and his team expect higher earnings revisions for Caesars (CZR), driven first by the regional portfolio that should see better near-term trends as promotional reinvestment normalizes and potential consumer tailwinds in the spring in the form of tax refunds and deflationary forces. In terms of Las Vegas, results are expected to improve sequentially from Q3 trough levels as seasonal factors, including higher convention and group business, benefit Caesars (CZR). Stauff also sees a more stable, online-driven trajectory for the iCasino business, even as Caesars still faces strategic gaps versus peers.
Susquehanna lifted its price target on Caesars (CZR) to $31 from $25.
Shares of Caesars (CZR) were up 8.8% in early Thursday afternoon trading to trade at a six-week high. Short interest on CZR stands at 14.2% of the total float.