Caesars Entertainment (NASDAQ:CZR) Lowered to "Market Perform" Rating by Raymond James Financial

Key Points

• Raymond James downgraded Caesars Entertainment from strong-buy to market perform, adding to a mixed analyst picture that currently carries a consensus Hold rating and a target price of about $32.73.
• Shares of CZR fell slightly to $28.99 in Friday trading, while the company continues to show leverage and weaker profitability, including a recent quarterly EPS miss despite revenue that came in slightly above expectations.
• The biggest development is Caesars’ agreement to be acquired by Fertitta Entertainment for $31 per share in cash, a deal that could trigger broader casino industry consolidation but is also drawing shareholder legal scrutiny over fairness of the price.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) was downgraded by analysts at Raymond James Financial from a "strong-buy" rating to a "market perform" rating in a research report issued on Friday,MarketScreener reports.

CZR has been the subject of several other reports. Susquehanna upgraded Caesars Entertainment from a "positive" rating to a "positive" rating in a research note on Friday. Barclays lowered their target price on Caesars Entertainment from $39.00 to $35.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. Citizens Jmp lifted their price target on shares of Caesars Entertainment from $34.00 to $35.00 and gave the company a "market outperform" rating in a report on Wednesday, April 29th. Citigroup boosted their target price on shares of Caesars Entertainment from $23.00 to $30.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Finally, Deutsche Bank Aktiengesellschaft lowered their target price on Caesars Entertainment from $36.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, February 18th. Six analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $32.73.

Caesars Entertainment Price Performance

Shares of CZR traded down $0.10 during trading hours on Friday, hitting $28.99. 5,069,453 shares of the company were exchanged, compared to its average volume of 6,186,917. The company has a quick ratio of 0.83, a current ratio of 0.85 and a debt-to-equity ratio of 3.25. Caesars Entertainment has a fifty-two week low of $17.86 and a fifty-two week high of $31.58. The company has a market cap of $5.90 billion, a price-to-earnings ratio of -12.23 and a beta of 1.77. The firm's fifty day moving average is $27.28 and its 200 day moving average is $24.49.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported ($0.48) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.24). The firm had revenue of $2.87 billion for the quarter, compared to the consensus estimate of $2.85 billion. Caesars Entertainment had a negative return on equity of 7.88% and a negative net margin of 4.19%.The company's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.54) EPS. On average, equities analysts anticipate that Caesars Entertainment will post -0.5 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Caesars Entertainment

Large investors have recently added to or reduced their stakes in the business. Capital World Investors lifted its position in shares of Caesars Entertainment by 29.8% during the 3rd quarter. Capital World Investors now owns 16,193,070 shares of the company's stock valued at $437,622,000 after acquiring an additional 3,716,148 shares during the period. State Street Corp boosted its position in shares of Caesars Entertainment by 0.8% during the 2nd quarter. State Street Corp now owns 7,569,822 shares of the company's stock worth $214,907,000 after purchasing an additional 61,065 shares in the last quarter. Morgan Stanley grew its stake in shares of Caesars Entertainment by 121.0% in the 4th quarter. Morgan Stanley now owns 7,141,899 shares of the company's stock valued at $167,049,000 after buying an additional 3,910,430 shares during the period. Janus Henderson Group PLC increased its position in Caesars Entertainment by 5.8% in the 1st quarter. Janus Henderson Group PLC now owns 6,529,700 shares of the company's stock valued at $172,582,000 after buying an additional 355,760 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in Caesars Entertainment by 246,899,900.0% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company's stock worth $115,500,000 after acquiring an additional 4,937,998 shares in the last quarter. Institutional investors and hedge funds own 91.79% of the company's stock.

Key Stories Impacting Caesars Entertainment

Here are the key news stories impacting Caesars Entertainment this week:

• Positive Sentiment: Caesars agreed to be acquired by Fertitta Entertainment for $31 per share in cash, giving investors a clear takeout price and a substantial premium. Reuters: Caesars Entertainment to be bought by Fertitta Entertainment for $17.6 billion
• Positive Sentiment: The all-cash structure reduces deal uncertainty for shareholders and signals that the buyer is willing to assume Caesars’ heavy debt load to close the transaction. WSJ: Caesars to Be Acquired by Fertitta Entertainment in All-Cash Deal
• Neutral Sentiment: Analysts and market commentary suggested the deal could support broader casino industry consolidation, potentially reshaping the competitive landscape for gaming stocks. Proactive Investors: Caesars Entertainment buyout potential catalyst for broader casino consolidation
• Negative Sentiment: Several shareholder law firms have launched investigations into whether Caesars obtained a fair price, highlighting possible legal scrutiny around the transaction. PR Newswire: Shareholder Alert investigation
• Negative Sentiment: Commentary noted Caesars faces ongoing industry challenges, including softer Las Vegas visitation and competition from online gambling, which helps explain why the company was willing to sell. WSJ: With Caesars Deal, Tilman Fertitta Doubles Down on Vegas Comeback

About Caesars Entertainment

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah's by William F.

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