Century Casinos Stock Rebound Could Take Time to Materialize
It could read a patch for Century Casinos (NASDAQ: CNTY) to reclaim lost glorification but the sell-off that’s seen the stock cast more than two-thirds of its value over the past tense year is too punitive.
That’s the have of Stifel analyst Jeffrey Stantial, who in a new describe to clients, reiterated a “buy” rating and a $5 terms mark on shares of the regional gambling casino operator. That forecast implies upside of 81.1% from the Feb 26 close. Stantial recently met with Century Co-CEO & Vice Chairman St. Peter the Apostle Hoetzinger, noting several of import takeaways.
Management is evaluating options to address/exploit perceived disruption inwards valuation and culmination of a certify renewal oscillation inwards Poland should help a possible sale,” observed the analyst.
Colorado-based Century owns most two-thirds of Casinos Poland, and it’s been to a greater extent than triplet years since the society said it was sounding to divest that stake. That exertion was delayed by Russia’s encroachment of Ukrayina in February 2022.
Century Casinos Stock Selloff Overdone
Down 40.37% year to engagement and nearly 70% removed from its 52-week high, Century has been unity of the worst-performing cassino stocks geological dating support to mid-2023.
Some of that drop-off is attributable to increased rivalry inward Reno and a slower-than-expected ramp-up full point inwards Maryland, the operator’s ii newest markets. However, a case put up be made that selling force per unit area on the caudex is excessive.
“While acknowledging underlying fundamental headwinds, we trust recent underperformance & fears of financial suffering are inordinate and deduction tapering one-time headwinds & homecoming on ontogenesis capex. Normalized earnings power won’t be evident until FY25, though buybacks/insider purchases may assist livelihood sentiment/valuation to a greater extent near-term,” added Stantial.
Century’s fundamentals could follow boosted in the indorsement half of this yr as improvements get hold of mold at its II Missouri gaming venues and the operator capitalizes on synergies at Nugget Sparks in Reno. The operator’s enhancements at its couple of MO casinos could assist in gaining more traction with mid- to higher-tier clients.
Some Century Casinos Headwinds are Temporary
Century late pre-announced fourth-quarter results that missed Wall Street forecasts but the atomic number 47 facing is that the downbeat numbers were for the most part attributable to temporary situations, viz. twist at its Missouri casinos and at Nugget Sparks.
As investors actualise those situations aren’t permanent — and that with a securities industry economic value of $88.35 million, Century is existence priced by marketplace participants intimately beneath the amount of its parts — the stock up could generate some near-term upside.
“Putting it all together, commentary throughout meetings attended suggests potentially more pronounced structural headwinds for CNTY vs. some regional peers,” concluded Stantial. “Still, this appears excessively discounted inwards CNTY’s stream valuation, with often of the FY24 Consensus revisions attributable to one-time headwinds. While normalized earnings power won’t be evident until FY25, we consider some more near-term catalysts for a potential ministration rally.”
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