Century Casinos Shares Sparkle, Analyst Says "Run Is Not Done"
Date posted: May 1, 2021, 12:54 pm
Last Updated: May 1, 2021, 04:37 h.
After soaring above 23 percent this week, Century Casinos (NASDAQ: CNTY) rose 106 percent from the start of the year. This easily makes it one of the best gambling instruments.
Those just now discovering a regional casino operator can take it to heart as analysts see more coming into action. In fact, it was analyst comment that spurred stocks up this week as David Bain of B. Riley initiated a gaming equity relationship with a "buy" rating and a $ 18 target price rating. This means the appreciation potential is around 38 percent from April 30 close.
The CNTY properties are located in the area, which we believe benefits from many factors in the current environment, including vaccination and fiscal stimulus, ”Bain said in a note to clients.
These factors, coupled with stock gains, confirm analysts and investors are valuing Century for its US exposure as stocks rise even as the operator struggles with temporary plant closings in Canada and Poland.
In the United States, the Century roster includes two casinos in the home state of Colorado, as well as in Missouri and West Virginia.
Century shares may be transferred through acquisitions
While Century's domestic real estate portfolio is small compared to some rivals at the regional casino, the operator is loved by some allists as the management has a reputation for successfully integrating bolt-on acquisitions.
At the end of last year, the company had 63.4 million cash on hand, and as Century shares rose, it has a currency to buy. In addition, there is a widely anticipated sale of assets in Poland that should bring in additional cash for transactions. B. Riley's Bain says the gaming company may soon revert to its acquisition methods, and this could potentially cause the share price to more than double.
CNTY represents a rare game of value for a casino operator that could potentially double earnings before interest, taxes, depreciation, depreciation and restructuring or rental costs ( EBITDAR) through domestic acquisitions by CY 23 E, creating a value per share above $ 28, an analyst said. “We believe CNTY's next US casino acquisition will be announced before the end of Q3 21, creating an estimated $ 4 per share not included in our target price. "
Bain says Century is possibly analyzing "the possibilities of acquiring many regional casinos in the US" but has not gone into detail.
More Catalysts for the Century Stock
Another Inevitable catalyst for the Century is the introduction of higher wagering limits and the introduction of new table games in Colorado. This was thanks to the passing of Amendment 77 last November, and analysts and operators believe that removing the 100 $ cap of 100 will help casinos be able to capture a longer, taller clientele.
Another benefit of the Century is that its domestic venues are highly frequented by locals - demographics willing to spend money on incentives and leave home after being vaccinated for the coronavirus.
" We believe that l Sea casinos are currently using with pent-up demand, increased capacity limits, introduction of COVID vaccine (bringing a key older demographic back to the casino), entertainment close to home, fiscal stimulus and an increase in the structural margin, Bain said.