Evaluating Caesars Entertainment: Insights From 5 Financial Analysts

Analysts' ratings for Caesars Entertainment CZR over the last quarter vary from bullish to bearish, as provided by 5 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Caesars Entertainment, presenting an average target of $59.0, a high estimate of $67.00, and a low estimate of $44.00. Observing a downward trend, the current average is 2.07% lower than the prior average price target of $60.25.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Caesars Entertainment among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Caesars Entertainment. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Caesars Entertainment compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Caesars Entertainment's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Caesars Entertainment's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Caesars Entertainment analyst ratings.

Unveiling the Story Behind Caesars Entertainment

Caesars Entertainment includes about 50 domestic gaming properties across Las Vegas (58% of 2022 EBITDAR before corporate and digital expenses) and regional (59%) markets. Additionally, the company hosts managed properties and digital assets, the later of which produced material EBITDA losses in 2022. Caesars' U.S. presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973 and expanded its presence through prior acquisitions to over 20 properties before merging with legacy Caesars. Caesars' brands include Caesars, Harrah's, Tropicana, Bally's, Isle, and Flamingo. Also, the company owns the U.S. portion of William Hill (it sold the international operation in 2022), a digital sports betting platform.

A Deep Dive into Caesars Entertainment's Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Caesars Entertainment's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 3.71%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Caesars Entertainment's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.47%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Caesars Entertainment's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.62%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Caesars Entertainment's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.22%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Caesars Entertainment's debt-to-equity ratio is below the industry average at 2.67, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.