Update shared on06 Sep 2025
Fair value Decreased 0.85%Analysts have trimmed Caesars Entertainment’s price target slightly to $41, reflecting underperformance in certain business segments, ongoing regulatory and macroeconomic risks, and cautious near-term sentiment, though long-term value remains supported by potential strategic actions and digital strength.
Analyst Commentary
- Mixed performance across business segments, with Regionals/Vegas underperforming expectations while Digital exceeded forecasts; ongoing evaluation of a potential business spin-off in 2026 supports long-term value.
- Recent transactions in the US gaming sector, such as the Boyd sale of its FanDuel stake, have provided a perceived boost to valuations across peer assets and may prompt further strategic activity/market re-rating.
- Concerns about over-earning and a potential pullback in Las Vegas consumer activity have weighed on sentiment, but patient investors could benefit as performance inflects in 2026, partly due to the return of high-profile, triennial conferences.
- New Jersey's proposed compromise to set gaming taxes below initially feared levels is seen as manageable for operators, with analysts expecting effective mitigation measures to limit financial impact.
- Macro risks (e.g., consumer pressures, tariffs) and regulatory/tax uncertainties persist for land-based and digital operations, but bullish analysts are focused on the appealing risk/reward, especially in regional, local Vegas, and digital gaming segments, naming Caesars among their top picks.
What's in the News
- Caesars has launched several new digital products, including its third in-house online casino title, Signature American Roulette (live in New Jersey), and the exclusive online and retail debut of IGT’s Kitty Glitter Grand slot, reinforcing its investment in proprietary and exclusive online gaming content (Key Developments).
- The company introduced significant advancements in user experience, such as launching a universal digital wallet for the Caesars Sportsbook app in Nevada (with expansion plans), and unveiling innovative offerings like Remote Reels at Tropicana Atlantic City, enabling live slot play online via real machines (Key Developments).
- Caesars continues to expand its omnichannel presence, opening its third branded online casino live dealer studio in Michigan (in partnership with Evolution), and integrating these offerings across multiple states and platforms, all tied into its Caesars Rewards loyalty program (Key Developments).
- Caesars, in partnership with Dry Creek Rancheria, broke ground on Caesars Republic Sonoma County, a fully branded, integrated resort casino in California featuring a new 100-room hotel, updated gaming floor, diverse dining options and connection to the Caesars Rewards network (Key Developments).
- New Jersey is finalizing a budget deal to raise online sports betting and iGaming taxes to “less than 20%,” impacting Caesars and other public gaming firms operating in the state (NJ.com, 2025-06-24, Periodicals).
Valuation Changes
Summary of Valuation Changes for Caesars Entertainment
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $41.35 to $41.00.
- The Future P/E for Caesars Entertainment remained effectively unchanged, moving only marginally from 21.13x to 20.95x.
- The Consensus Revenue Growth forecasts for Caesars Entertainment remained effectively unchanged, at 3.4% per annum.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.