What Analysts Are Saying About Churchill Downs Stock

Churchill Downs CHDN has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $142.17, a high estimate of $148.00, and a low estimate of $137.00. Highlighting a 4.79% decrease, the current average has fallen from the previous average price target of $149.33.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Churchill Downs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Churchill Downs. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Churchill Downs compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Churchill Downs's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Churchill Downs's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Churchill Downs analyst ratings.

Discovering Churchill Downs: A Closer Look

Churchill Downs Inc is a gaming entertainment, online wagering, and racing company. It operates through three business segments: Live and Historical Racing, TwinSpires, and Gaming. The Live and Historical Racing segment includes live and historical pari-mutuel racing. The TwinSpires segment includes the revenue and expenses for online horse racing and the online and retail sports betting and iGaming wagering business. The company generates more than half of its revenue from the Gaming segment includes revenue from casino properties and associated racetrack or jai alai facilities which support the casino license as applicable.

Churchill Downs: Delving into Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Churchill Downs showcased positive performance, achieving a revenue growth rate of 49.44% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Churchill Downs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.66%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Churchill Downs's ROE excels beyond industry benchmarks, reaching 7.0%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Churchill Downs's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.92% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 5.31, Churchill Downs faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts 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.