Mizuho Issues Positive Forecast for Churchill Downs (NASDAQ:CHDN) Stock Price

Key Points

• Mizuho raised its target price on Churchill Downs to $155 from $146 and kept an "outperform" rating, implying about a 53.17% upside from the prior close.
• Churchill Downs beat Q1 estimates with $1.21 EPS versus a $1.06 consensus and $663M revenue, reporting improved margins and ROE and analysts projecting roughly 6.88 EPS for the year.
• The company agreed to buy the Preakness Stakes intellectual property for $85M to bolster media/licensing and wagering revenue, but investors should monitor execution and high leverage (debt-to-equity ~5.02).

Churchill Downs (NASDAQ:CHDN - Get Free Report) had its target price boosted by investment analysts at Mizuho from $146.00 to $155.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's target price points to a potential upside of 53.17% from the stock's previous close.

A number of other brokerages also recently issued reports on CHDN. Jefferies Financial Group reiterated a "buy" rating on shares of Churchill Downs in a research report on Tuesday. Citizens Jmp upped their price objective on shares of Churchill Downs from $146.00 to $149.00 and gave the stock a "market outperform" rating in a research report on Friday. Wells Fargo & Company reiterated an "overweight" rating and set a $130.00 target price (up from $124.00) on shares of Churchill Downs in a research report on Thursday, April 16th. Finally, Citigroup reissued an "outperform" rating on shares of Churchill Downs in a report on Friday. Eleven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $137.80.

Churchill Downs Price Performance

Shares of CHDN traded up $3.29 during mid-day trading on Friday, reaching $101.20. 1,089,186 shares of the stock traded hands, compared to its average volume of 951,183. The company has a market cap of $7.05 billion, a price-to-earnings ratio of 18.74, a price-to-earnings-growth ratio of 1.33 and a beta of 0.65. Churchill Downs has a 1 year low of $80.24 and a 1 year high of $118.46. The firm has a fifty day moving average price of $89.26 and a 200 day moving average price of $98.73. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 5.02.

Churchill Downs (NASDAQ:CHDN - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.15. Churchill Downs had a return on equity of 44.21% and a net margin of 13.21%.The company had revenue of $663.00 million during the quarter, compared to analyst estimates of $659.32 million. During the same quarter last year, the company earned $1.07 earnings per share. The firm's quarterly revenue was up 3.1% on a year-over-year basis. As a group, equities research analysts predict that Churchill Downs will post 6.88 earnings per share for the current year.

Hedge Funds Weigh In On Churchill Downs

A number of large investors have recently modified their holdings of CHDN. Norges Bank purchased a new stake in Churchill Downs in the fourth quarter worth approximately $90,529,000. AQR Capital Management LLC raised its stake in shares of Churchill Downs by 22,974.8% during the second quarter. AQR Capital Management LLC now owns 788,006 shares of the company's stock worth $79,352,000 after acquiring an additional 784,591 shares in the last quarter. Jennison Associates LLC lifted its holdings in shares of Churchill Downs by 52.3% in the 3rd quarter. Jennison Associates LLC now owns 1,457,336 shares of the company's stock worth $141,376,000 after acquiring an additional 500,395 shares during the last quarter. Alua Capital Management LP bought a new stake in shares of Churchill Downs in the 3rd quarter worth approximately $48,532,000. Finally, Balyasny Asset Management L.P. boosted its stake in shares of Churchill Downs by 94.1% in the 4th quarter. Balyasny Asset Management L.P. now owns 1,020,393 shares of the company's stock valued at $116,100,000 after purchasing an additional 494,553 shares in the last quarter. 82.59% of the stock is owned by hedge funds and other institutional investors.

More Churchill Downs News

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Q1 results beat expectations — CHDN reported $1.21 EPS vs. $1.06 consensus and $663M revenue (vs. ~$659M est.), with improving margins and ROE. This is the primary catalyst for the rally and supports near-term earnings growth expectations. Company Press Release
• Positive Sentiment: Strategic acquisition — Churchill Downs agreed to buy the intellectual-property rights to the Preakness Stakes for $85M, giving it control of another marquee racing brand, which should support media, licensing and wagering revenue opportunities. Churchill Downs to acquire Preakness IP
• Positive Sentiment: Analyst upgrade/price-target lift — Citizens JMP raised its target to $149 and kept a "market outperform" rating, signaling sizable analyst-convicted upside versus current levels and likely supporting investor sentiment. Benzinga
• Positive Sentiment: Derby Week tailwinds and management tone — Management signaled confidence on the earnings call and the company is positioned for Derby Week promotional and wagering volumes, which typically boost near-term revenue. Churchill Downs rallies after earnings
• Neutral Sentiment: Public disclosures and coverage — Full earnings call transcript and analyst summaries are available for deeper read-throughs; these provide detail but already appear priced in given the market reaction. Q1 Earnings Call Transcript
• Neutral Sentiment: Broader coverage/reviews — Several outlets summarized results and call highlights; useful for detail but not new catalysts. TipRanks summary
• Negative Sentiment: Leverage and execution risk — Longer-term upside depends on successful monetization of racing IP and the company’s ability to manage leverage; investors should monitor debt levels and integration/ROI on the Preakness purchase (background financials show relatively high debt-to-equity).

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.

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