AnalystConsensusTarget updated the narrative for CZR

Analysts have lowered their average price target for Caesars Entertainment from approximately $40.12 to $35.88 per share, citing recent earnings misses, margin pressure, and ongoing uncertainties in Las Vegas and digital operations as key factors for the revised outlook.

Analyst Commentary

Following recent earnings reports, analysts have offered a mix of optimism and caution regarding Caesars Entertainment’s future prospects. Their commentary highlights both potential growth drivers and ongoing challenges that may influence the company’s valuation and strategies moving forward.

• Some analysts believe that Caesars’ current valuation presents a favorable risk-reward profile, suggesting upside potential despite recent share price weakness.
• There is optimism about a recovery in group bookings for Las Vegas in the fourth quarter. This could support a rebound in profitability if leisure trends stabilize.
• Growth in digital operations is noted, with a 15% increase in active online players. This indicates potential for improved future cash flow despite near-term marketing spend.
• Regional gaming properties are demonstrating resilience, as supported by higher spend per visit and steady visitation rates. This provides a solid foundation for earnings outside of Las Vegas.

• Bearish analysts cite recent EBITDA and EBITDAR misses as causes for near-term concern, stemming from unfavorable hold rates and elevated marketing expenses.
• Las Vegas continues to experience margin pressure, and uncertainty remains regarding the pace of leisure demand recovery.
• Ongoing weakness among lower-end consumers could result in further earnings estimate reductions, particularly if macroeconomic challenges persist.
• High digital marketing costs are weighing on margins. Some analysts warn of continued caution until these expenses show clear payoff in the bottom line.

What's in the News

• Truist lowered its price target on Caesars Entertainment from $32 to $30 per share, following a Q3 EBITDA miss and ongoing concerns about Las Vegas performance. The firm, however, maintained a Buy rating on the shares (Truist).
• Caesars completed a $100 million share buyback tranche, having repurchased 3,900,000 shares between July and October 2025. This brings the total repurchased under the current program to over 9.3 million shares.
• The company, together with AGS, launched two exclusive slot titles, Kingdom of Horus and Reign of Anubis, across Caesars’ online casinos in multiple states and physical locations in Atlantic City.
• Bragg Gaming Group expanded its exclusive online casino content partnership with Caesars to West Virginia. This marks the sixth U.S. iGaming state for Bragg's proprietary content.
• Caesars announced the domestic schedule for the WSOP Online 2025 fall series, featuring 33 bracelet events with pooled liquidity for the first time across Nevada, New Jersey, Pennsylvania, and Michigan.

Valuation Changes

• Consensus Analyst Price Target has decreased from $40.12 to $35.88 per share, reflecting a reduction of approximately 10.6%.
• Discount Rate remains unchanged at 12.32% despite other shifts in financial projections.
• Revenue Growth expectations have risen slightly, increasing from 3.42% to 3.73% annually.
• Net Profit Margin is projected to decline from 4.63% to 4.20%, which signals greater margin pressure ahead.
• Future P/E multiple has dropped from 19.05x to 17.16x. This indicates a more conservative earnings outlook.