Las Vegas locals (LVL) market<\/a> will fuel more upside for the shares. The stock closed just under $41 last Friday, but one analyst believes a run to $60 is possible.<\/p>\n<\/div>\nOn the credit side, Moody’s notes Golden’s maturity profile is favorable, and the gaming operator’s efforts to reduce debt are commendable.<\/p>\n
\u201cThe maturity profile is otherwise good with the term loan maturing in October 2024,\u201d said the ratings agency. \u201cGolden’s net leverage is currently above 5.85x, but Moody’s expects covenant leverage to fall below this level in the second quarter, with the cushion improving thereafter.\u201d<\/p>\n
Other Golden Catalysts<\/h2>\n
At the end of the first quarter, Golden had $155 million in cash, which is more than 10 percent of its current market value of $1.15 billion. That could be a sign the operator’s market capitalization isn’t adequately reflecting that cash.<\/p>\n
It almost certainly isn’t reflecting the $1.2 billion worth of unused Las Vegas real estate the company holds, or the upside that could be accrued if it wins a gaming route contract in Pennsylvania.<\/strong><\/p>\nFor now, it remains to be seen if Golden’s B3 rating changes for the better. But it’s not out of the question.<\/p>\n
\u201cThe stable outlook considers the recovery in the company’s business and margin improvement exhibited since reopening, and the expectation for sustained improvement in 2021,\u201d adds Moody’s. \u201cRatings could be upgraded if the company’s facilities remain open and earnings recover such that consistent and comfortably positive free cash flow and sustained reinvestment flexibility is fully restored, and debt-to-EBITDA is sustained below 5.75x.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The outlook on Golden Entertainment’s (NASDAQ:GDEN) B3 credit rating was recently upgraded by Moody’s Investors Service, and while an alteration to that grade wasn’t made in the assessment, it’s a possibility in the future. The research firm raised its outlook on the gaming company’s debt grade to \u201cstable\u201d from \u201cnegative\u201d in a new report. Golden’s […]<\/p>\n","protected":false},"author":46,"featured_media":174459,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Golden Entertainment Credit Rating Outlook Upgraded by Moody's<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n