CZR

Caesars Entertainment Corp

Consumer


Presented:03/05/2018
Price:$12.25
Cap:$8.63B
Current Price:$45.01
Cap:$9.74B

Presented

Date03/05/2018
Price$12.25
Market Cap$8.63B
Ent Value$13.66B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S704.13M
Ave Daily Vol7,622,179
Short Int47.21%

Current

Price$45.01
Market Cap$9.74B
Caesars Entertainment Corp. is a holding company, which engages in the provision of casino-entertainment and hospitality services. It operates through the following segments: CERP, CGP, and Other. The CERP segment consists of Flamingo Las Vegas, Harrah's Atlantic City, Harrah's Las Vegas, Harrah's Laughlin, Paris Las Vegas, and Rio All-Suites Hotel & Casino. The CGP segment comprises of Bally's Las Vegas, The Cromwell, Harrah's New Orleans, Horseshoe Baltimore, The LINQ Hotel & Casino, Planet Hollywood Resort & Casino, CIE Real-Money Online Gaming, and CIE World Series of Poker. The Other segment includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results. The company was founded by William Fisk Harrah in 1937 and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Caesars Entertainment Corp (CZR), Gaming and Leisure Properties Inc (GLPI), VICI Properties Inc (VICI)

Highlights

The presenter recently established a long position in Caesars Entertainment (CZR), which stands to benefit from a positive macro backdrop and several initiatives that are within management’s control. He is bullish on the overall gaming sector and sees upside for CZR’s top line within that context, and there appears to be a margin improvement opportunity. Additionally, the valuation is attractive at 8x his 2018 EBITDA forecast and there is a real estate arbitrage aspect to the story (due to gaming REITs trading at 13x – 15x). With the stock at ~$12.25, and comps trading at 11x – 13x EBITDA, there could be 40% - 80% upside over the next 12 – 24 months, excluding the real estate opportunity.

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Idea Discussion

Commentor 1 - 2 weeks ago

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