Caesars Entertainment (NASDAQ:CZR) fell more than 4% today despite the company reporting better-than-expected Q2 results.
Revenue for the quarter came in at $2.9 billion, compared to the consensus estimate of $2.87B. Same-store adjusted EBITDA was $1.0B, compared to $978 million in Q2/22. Same-store adjusted EBITDA, excluding Caesars Digital segment, came in at $996M, compared to $1.0B in Q2/22.
“Demand remains strong in both Las Vegas and our regional markets. Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings,” said CEO Tom Reeg.
Following the results, several Wall Street firms, including Barclays, Stifel, Jefferies, and BofA Securities, raised their price targets on the stock.
BofA Securities raised its price target on the company to $60.00 from $55.00 while maintaining a Neutral rating.
“Solid and likely better than feared regional results were the highlight while Vegas margins were a touch light on hold and a tough convention comp. Digital strategy is progressing with upcoming catalysts via product / technology improvements,” mentioned BofA.