VICI Properties (VICI): Reassessing Valuation Following Analyst Downgrades and Lease Uncertainty with Caesars

VICI Properties (VICI) is back in the spotlight after several analyst downgrades, all stemming from ongoing questions about its lease arrangements with Caesars Entertainment and related coverage ratio concerns. Investors are watching to see how these discussions could impact future earnings.

See our latest analysis for VICI Properties.

VICI Properties’ latest share price of $28.59 reflects the market’s unease after the recent lease uncertainty, with the stock posting a 4.67% decline over the past month and a 4.57% total shareholder return loss for the year. After several years of building momentum, these operational headwinds have caused investor confidence to soften in the short term, even as long-term returns have still managed to stay positive.

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With analyst downgrades and uncertainty swirling around VICI’s lease talks, the key question now is whether the current share price reflects all these risks. Alternatively, have these challenges created a genuine bargain for long-term investors?

Most Popular Narrative: 20.8% Undervalued

Compared to the last close of $28.59, the most popular narrative pegs VICI Properties’ fair value much higher. This suggests the market may be underestimating near-term headwinds, even as analysts are recalibrating long-term expectations.

The company's scale, access to $2.9 billion in liquidity, and disciplined internal funding position enable accretive acquisitions and partnerships without near-term dependence on capital markets. This supports earnings and AFFO per share growth while maintaining low G&A expenses and strong net margins.

Read the complete narrative.

Want to discover what bold projections are driving this call? One pivotal factor is a future profit profile that could eclipse sector standards. See the full narrative to unearth the surprising financial assumptions anchoring that higher valuation.

Result: Fair Value of $36.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing shifts to online gaming and VICI's high tenant concentration remain pivotal risks that could challenge the optimistic view on long-term growth.

Find out about the key risks to this VICI Properties narrative.

Build Your Own VICI Properties Narrative

If you see things from a different angle or want to dive deeper into the numbers yourself, you can quickly shape your own narrative in just a few minutes: Do it your way.

A great starting point for your VICI Properties research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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