would not occur until next year<\/a>. But it’s possible the company could be motivated by the price points on recent sales. This year, speculation is swirling about the fate of Paris and Planet Hollywood. But Caesars hasn’t publicly said that those are the venues it’s prioritizing in potential sales.<\/span><\/p>\n<\/div>\n\u201cFurthermore, while management has historically indicated a sale of a Strip asset would likely follow normalization in the group segment, we think recent transactions in the market (Cosmopolitan, Venetian\/Palazzo) could see management act more opportunistically to unlock value in their portfolio and drive leverage lower,\u201d adds Wieczynski. \u201cGiven where comps have transacted, we see no reason why CZR couldn\u2019t get as high as a low-teens multiple on one of the assets perceived to be for sale.\u201d<\/span><\/p>\nThe analyst adds the sale of a Strip venue should dramatically accelerate management’s efforts to delever the balance sheet.<\/span><\/p>\nAhead of the Curve in Sports Betting<\/span><\/h2>\nData suggest Caesars’ newly launched online sportsbook has ground to make up against larger rivals. But it is a rising player in the space.<\/span><\/p>\nCaesars is using the $3.69 billion acquisition of William Hill to make a splash in iGaming and sports wagering. That’s a move Wall Street likes, because the company significantly defrayed that purchase price by selling William Hill’s international assets for $3 billion. It also liquidated part of the inherited NeoGames (NASDAQ:NGMS) stake. <\/span><\/p>\nOwing to the expanse of Caesars Rewards, the industry’s largest loyalty program, the company has enviable cross-selling opportunities that could drive long-term value in next-generation gaming.<\/strong><\/span><\/p>\n“Not only does the largest land-based rewards database present ample low-cost customer acquisition opportunities, but we also expect management to explore innovative ways to unlock further value at their brick and mortar properties as well,\u201d concludes Wieczynski. \u201cAs one example, management has already begun to utilize sports betting marketing data to drive promotional decisions at the property (those customers would effectively be treated as unrated, otherwise).\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Caesars Entertainment (NASDAQ:CZR) stock is up 56.39 year-to-date. That’s a performance many investors may believe is attributable to the company’s expanding iGaming and sports wagering footprints. But it’s traditional casinos driving enthusiasm for the shares. The operator is the second-largest on the Las Vegas Strip, and has a deep portfolio of regional assets, both of […]<\/p>\n","protected":false},"author":46,"featured_media":188375,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Caesars Stock Can Move Higher, Asset Sale May Help<\/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