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

Key Points

• Morgan Stanley raised its target price on Caesars to $34 (from $32) while maintaining an "equal weight" rating, implying about a 26.22% upside from the prior close.
• Caesars missed earnings, reporting Q results of ($1.23) EPS versus consensus ($0.18) loss (a $1.05 miss) though revenue of $2.92B slightly beat estimates; the company still shows negative margins, negative ROE, and high leverage (debt/equity ~3.17).
• Analyst sentiment is mixed but tilted positive — 10 Buys, 6 Holds, 1 Sell with a consensus target of $32.13 ("Moderate Buy") — and institutional ownership is high at about 91.8%.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) had its target price raised by research analysts at Morgan Stanley from $32.00 to $34.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price objective points to a potential upside of 26.22% from the stock's previous close.

CZR has been the topic of several other reports. Stifel Nicolaus lowered their target price on Caesars Entertainment from $39.00 to $36.00 and set a "buy" rating on the stock in a research note on Wednesday, February 18th. Zacks Research upgraded Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research note on Friday, March 6th. Citizens Jmp lowered their target price on Caesars Entertainment from $37.00 to $34.00 and set a "market outperform" rating on the stock in a research note on Wednesday, February 18th. TD Cowen reiterated a "buy" rating on shares of Caesars Entertainment in a research note on Wednesday, January 21st. Finally, Wall Street Zen upgraded Caesars Entertainment from a "sell" rating to a "hold" rating in a research note on Saturday. Ten investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $32.13.

Caesars Entertainment Trading Up 1.3%

CZR opened at $26.94 on Wednesday. The firm has a market cap of $5.48 billion, a price-to-earnings ratio of -11.13 and a beta of 1.87. Caesars Entertainment has a 52 week low of $17.86 and a 52 week high of $31.58. The business's 50 day moving average is $23.94 and its two-hundred day moving average is $23.39. The company has a quick ratio of 0.78, a current ratio of 0.80 and a debt-to-equity ratio of 3.17.

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

Institutional Trading of Caesars Entertainment

A number of institutional investors have recently modified their holdings of CZR. Invesco Ltd. raised its position in Caesars Entertainment by 12.8% during the fourth quarter. Invesco Ltd. now owns 995,208 shares of the company's stock worth $23,278,000 after acquiring an additional 112,691 shares during the last quarter. Alberta Investment Management Corp purchased a new position in shares of Caesars Entertainment during the 4th quarter worth approximately $1,696,000. Mercer Global Advisors Inc. ADV purchased a new position in shares of Caesars Entertainment during the 4th quarter worth approximately $484,000. State of Tennessee Department of Treasury raised its position in shares of Caesars Entertainment by 125.7% during the 4th quarter. State of Tennessee Department of Treasury now owns 54,824 shares of the company's stock worth $1,282,000 after purchasing an additional 30,536 shares during the last quarter. Finally, XTX Topco Ltd lifted its stake in Caesars Entertainment by 202.5% in the 4th quarter. XTX Topco Ltd now owns 64,427 shares of the company's stock valued at $1,507,000 after buying an additional 43,126 shares in the last quarter. 91.79% of the stock is currently owned by hedge funds and other institutional investors.

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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