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Caesars Entertainment is backed on Wall Street to blow past recession fears

Caesars Entertainment is backed on Wall Street to blow past recession fears #Caesars #Entertainment #backed #Wall #Street #blow #recession #fears Welcome to RKM Blog, here is the new story we have for you today:

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Trading Charts on a Display

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Bulls on Wall Street are defending Caesars Entertainment (NASDAQ:CZR) even though the casino operator could feel some recession pressure in the quarters ahead.

B Riley Financial (Buy rating, $102 price target) said the most confusing thing out of CZR’s Q2 report will be variability in sell-side estimates. Analyst David Bain noted some will assume a full-blown recession or a significantly deepening one from here, while others are likely to acknowledge a forward slowdown, incorporate such into forecasts, but not “leap into the hypothetical depths of acute macro downside.” B Riley is staying bullish on CZR and said it remains one of the firm’s top picks in the gaming space.

Union Gaming (Buy rating, $90 price target) is also positive on the CZR earnings report, saying the Las Vegas segment posted record EBITDA but is a not yet at a peak. Analyst John DeCree said the biggest story of CZR’s quarter was the Digital segment’s improved profitability profile and outlook for more limited future losses.

Jefferies (Buy rating, $80 price target) also defended the casino stock.

Analyst David Katz: “While the dial-back in digital spend should be a positive, the lack of a meaningful update on a Strip asset sale leaves leverage >5X, the key weight on the stock in the current market context. Nevertheless, we see significant upside to current levels and expect patience to be rewarded.”

The Seeking Alpha Quant Rating on CZR has been flashing Sell since May 9.

Shares of Caesars Entertainment (CZR) fell 1.87% in premarket trading to $48.25.

Dig into the CZR earnings call transcript.

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