Analyst Note
| Dan Wasiolek |We don’t plan any material change to our no-moat Caesars’ $56 fair value estimate, as the company’s third-quarter results and outlook harmonize with our existing forecasts, leaving shares fairly valued.
1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
We don’t plan any material change to our no-moat Caesars’ $56 fair value estimate, as the company’s third-quarter results and outlook harmonize with our existing forecasts, leaving shares fairly valued.
Caesars Entertainment Includes 53 domestic gaming properties (before Indiana property divestures planned for late 2020/early 2021) across Las Vegas (45% of 2021 estimated EBITDAR, before synergies) and regional (55%) markets. Additionally, the company hosts 13 international properties, which generate near breakeven EBITDAR. Caesars' U.S. presence roughly doubled with the 2020 completed 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 partners with William Hill to provide sports betting.