Caesars Entertainment (NASDAQ:CZR) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on Caesars to $32 from $25 while keeping an equal-weight rating, implying roughly a 10% upside from current levels.
• Reports say Tilman Fertitta is in exclusive talks to acquire Caesars for about $7 billion, a takeover story that has driven heavy buying, unusually large call-option volume and an intraday jump of about 11.8%.
• Underlying fundamentals remain a concern: Caesars posted a wide EPS miss, has negative margins and ROE, and a high debt-to-equity ratio (~3.17), which could complicate financing or regulatory approval for any deal.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) had its price target raised by equities researchers at Morgan Stanley from $25.00 to $32.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price target points to a potential upside of 10.08% from the company's current price.

A number of other equities analysts also recently issued reports on CZR. Citizens Jmp cut their target price on Caesars Entertainment from $37.00 to $34.00 and set a "market outperform" rating for the company in a research note on Wednesday, February 18th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Caesars Entertainment in a research report on Wednesday, January 21st. Zacks Research upgraded shares of Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Barclays dropped their price target on Caesars Entertainment from $39.00 to $35.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Finally, Wells Fargo & Company initiated coverage on shares of Caesars Entertainment in a research note on Tuesday, November 18th. They set an "equal weight" rating and a $21.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $33.65.

Caesars Entertainment Trading Up 11.8%

NASDAQ CZR opened at $29.07 on Thursday. The firm's fifty day moving average is $22.80 and its two-hundred day moving average is $23.31. Caesars Entertainment has a one year low of $17.86 and a one year high of $31.58. The company has a debt-to-equity ratio of 3.17, a quick ratio of 0.78 and a current ratio of 0.80. The firm has a market cap of $5.92 billion, a PE ratio of -11.96, a P/E/G ratio of 62.35 and a beta of 1.94.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last released its quarterly earnings results on Tuesday, February 17th. The company reported ($1.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.18) by ($1.05). The company had revenue of $2.92 billion for the quarter, compared to analysts' expectations of $2.89 billion. Caesars Entertainment had a negative return on equity of 7.97% and a negative net margin of 4.37%.The business's quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.05 EPS. Analysts expect that Caesars Entertainment will post -0.77 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Healthcare of Ontario Pension Plan Trust Fund grew its stake in Caesars Entertainment by 246,899,900.0% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company's stock valued at $115,500,000 after purchasing an additional 4,937,998 shares in the last quarter. Morgan Stanley lifted its position in shares of Caesars Entertainment by 121.0% during the fourth quarter. Morgan Stanley now owns 7,141,899 shares of the company's stock worth $167,049,000 after purchasing an additional 3,910,430 shares during the last quarter. Capital World Investors grew its stake in Caesars Entertainment by 29.8% in the third quarter. Capital World Investors now owns 16,193,070 shares of the company's stock worth $437,622,000 after purchasing an additional 3,716,148 shares in the last quarter. Norges Bank bought a new position in shares of Caesars Entertainment during the fourth quarter valued at approximately $76,050,000. Finally, MUFG Securities EMEA plc bought a new position in Caesars Entertainment during the 4th quarter worth $65,492,000. 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: Reports say Tilman Fertitta is in exclusive talks to acquire Caesars for about $7B, having topped a competing Icahn bid — takeover interest is the primary catalyst boosting demand and takeover-premium expectations. Tilman Fertitta in talks to buy Caesars for $7 billion, WSJ reports
• Positive Sentiment: Multiple outlets carried the takeover story (WSJ/Investing.com/MSN/InsiderMonkey), reinforcing market conviction and driving heavy buying interest. Tilman Fertitta in Talks to Buy Caesars for $7 Billion After Topping Bid From Icahn
• Positive Sentiment: Unusually large call-option volume — ~38,587 calls traded (a >200% jump vs. typical daily) — signals speculative bullish positioning or players positioning for a takeover/short squeeze ahead of formal news.
• Neutral Sentiment: Short-interest dynamics are mixed: a reported decline in late-Feb short interest (~30.5M shares, ~15.2% of float) could reduce immediate squeeze risk, but some March short-interest figures in public feeds appear corrupted (showing 0), so data should be interpreted cautiously.
• Neutral Sentiment: Trading was briefly halted via a Limit Up/Limit Down (LULD) pause during the session — a procedural pause reflecting sudden volatility rather than company fundamentals.
• Neutral Sentiment: Analyst/feature coverage: recent pieces (e.g., Seeking Alpha) debate Caesars’ strategy and valuation — useful for thesis building but not definitive market-moving news by itself. Caesars Entertainment: Betting On The House To Win
• Negative Sentiment: Underlying fundamentals remain a risk: Caesars missed last reported quarterly EPS (reported loss wider than estimates), has negative margins/ROE and a high debt-to-equity ratio (~3.17), which could complicate financing or regulatory approval for any deal and weigh on intrinsic valuation.

Caesars Entertainment Company Profile

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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