What Churchill Downs (CHDN)'s Fintech Partnership With Everi Means for Shareholders

• Everi recently announced a seven-year agreement with Churchill Downs Incorporated to roll out its CashClub and other financial technology solutions at Churchill Downs’ racing and gaming venues, including payments processing and compliance technology.
• This collaboration focuses on modernizing transaction processes and enhancing compliance, with the aim of delivering a more efficient and personalized patron experience across Churchill Downs’ entertainment properties.
• We’ll explore how this major fintech partnership could strengthen Churchill Downs’ efficiency and compliance within its investment narrative.

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Churchill Downs Investment Narrative Recap

To own Churchill Downs shares, you have to believe in the long-term resilience of live racing, HRM gaming, and marquee experiences like the Kentucky Derby, despite changing consumer tastes and a crowded gaming market. The Everi partnership brings advanced fintech to Churchill Downs venues, aiming to strengthen operational efficiency and compliance; however, it does not materially change the high near-term focus on scaling new gaming properties or address the immediate risk of ongoing revenue volatility linked to racing and HRM concentration.

Amidst a push to modernize and expand, Churchill Downs recently announced the opening of Owensboro Racing & Gaming, a high-tech venue with 600 historical racing machines. While the Everi deal provides back-end upgrades for payments and compliance, performance at these new gaming sites remains central to the company’s growth prospects, especially as it contends with evolving regional gaming competition and shifting entertainment preferences.

Yet investors also need to watch for the lingering risk of declining interest in horse racing and HRM venues should...

Read the full narrative on Churchill Downs (it's free!)

Churchill Downs is projected to reach $3.2 billion in revenue and $541.1 million in earnings by 2028. This outlook assumes a 4.2% annual revenue growth rate and a $111.2 million increase in earnings from the current $429.9 million.

Uncover how Churchill Downs' forecasts yield a $137.45 fair value, a 53% upside to its current price.

Exploring Other Perspectives

Four estimates from the Simply Wall St Community put Churchill Downs’ fair value between US$52.87 and US$137.45 per share. While opinions are split, the concentration in horse racing and historical gaming leaves the business exposed if these segments face headwinds, explore these contrasting viewpoints to inform your outlook.

Explore 4 other fair value estimates on Churchill Downs - why the stock might be worth as much as 53% more than the current price!

Build Your Own Churchill Downs Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Churchill Downs research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Churchill Downs research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Churchill Downs' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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