Century Casinos Preferred Among Analysts and Investors

Missouri. While the company looks for further purchases, it has just recorded a modest performance according to the third-quarter financial report.

More About Century

Century has undergone a significant expansion and now it looks to remain stable. According to the analysts’ opinion, the property has a positive future and we can expect the additional success of the Colorado-based venue. One of the analysts, Chad Benyon of Macquarie, has stated that the company’s stock should get a rating of “Outperform.” Additionally, it deserves a price target of $11 which comes as a 25% increase compared to its latest trading price.

Century Casinos have been further ed by the deal with Eldorado Resorts International. Benyon explained:

“Over the last ten years, CNTY doubled the company’s earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) (EBITDAR) in 2015 and will again in 2020, in our view. This is, in part, due to the $107m acquisition of three mature Eldorado Resorts properties.”

Current Situation

At the moment, Century stands out with a capitalization of around $241 million, regarded as a micro-cap region. It seems to be positive for the venue, but the Colorado-based casino has enormous growth potential compared to other of the same group. Benyon mentioned:

“CNTY currently trades at 6.3x/5.6x our 2020/21E EBITDA compared to peers trading at 8.6x /7.9x and <$500M market cap companies at ~7.5x. Given every 0.5x turn in EBITDA = ~$1.30 of equity, or ~10%, a stock re-rate closer to market multiples could provide for major upside.”

Investors View

Century has also been ed by investors. Only in this past month, investors have helped the property to record an increase of 13%. The operator reached the lowest point during October when it hit a $7.06 level. It is yet to be seen whether the casino’s stocks will be able to come to its 52-week high of $10.41 by the end of the year.

Meanwhile, we can expect to see positive results very soon. If the operator doesn’t reach the predicted level within the next month, it will certainly make the same thing over the next period. Century Casinos will rise significantly thanks to the purchase of new properties which have the potential of driving the company’s cash flow by $0.21.

Source:

“Analysts like Century Casinos, so do investors“, Erik Gibbs, calvinayre.com, December 13, 2019.