2) Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 54
Caesars Entertainment, Inc. (NASDAQ:CZR) owns and operates as a chain of resorts. It provides casino, poker, roulette, and other gaming facilities, and offers food and beverage services.
Caesars Entertainment, Inc. (NASDAQ:CZR) plans to leverage its national network via a loyalty program, which should encourage increased visitation to multiple properties. Given the strong push in online gaming, a healthy sportsbook, and a balanced casino business between Las Vegas and regional locations, Wall Street believes that the company is well-positioned for future growth. Caesars Entertainment, Inc. (NASDAQ:CZR has now focused on completing its capital expenditure cycle, reducing its debt, and buying back its stock.
Wall Street analysts believe that the company is expected to see strong performance and favorable gaming revenue in Las Vegas, courtesy of its strong pricing power in the market. There is optimism regarding its sports and iCasino segments, and the company anticipates a strong year-end finish. Caesars Entertainment, Inc. (NASDAQ:CZR) is also expecting a significant increase in FCF, which it plans to use for debt and leverage reduction.
The company released its 2Q 2024 financial results. On a consolidated basis, Caesars Entertainment, Inc. (NASDAQ:CZR) was able to generate $1 billion of Adjusted EBITDA. Its operating results demonstrate YoY growth in Adjusted EBITDA in its Las Vegas segment as a result of record same-store revenues, hotel occupancy, and Average Daily Rate (ADR).
The company is optimistic about 2H 2024 as a result of healthy operating trends in its Las Vegas and Caesars Digital segments. Moreover, anticipated openings of a permanent facility in Danville and its $430 million capital investment in the newly rebranded Caesars New Orleans property should also act as growth drivers. Analysts at JMP Securities upped their price objective on the shares of Caesars Entertainment, Inc. (NASDAQ:CZR) from $58.00 to $59.00, giving it a “Market outperform” rating on 22nd August. Insider Monkey’s 2Q 2024 data revealed that the company was in the portfolios of 54 hedge funds.
Baron Funds, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:
“In the most recent quarter, we chose to lower the Fund’s large exposure to travel-related real estate companies and exited the Fund’s position in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers.
We have near-term reservations about a possible moderation in consumer demand for some of Caesars’ properties and believe the move higher in interest rates and a largely quiet transaction market also negatively impact certain highly leveraged companies such as Caesars. We are fans of CEO Tom Reeg and may revisit Caesars for purchase at a later date.”
