{"id":199859,"date":"2022-01-31T10:46:04","date_gmt":"2022-01-31T18:46:04","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=199859"},"modified":"2022-02-01T10:14:32","modified_gmt":"2022-02-01T18:14:32","slug":"caesars-could-command-2-billion-in-strip-asset-sale-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/","title":{"rendered":"Caesars Still a Buy, Could Land $2B in Strip Asset Sale, Says Analyst"},"content":{"rendered":"

Caesars Entertainment (NASDAQ:CZR) stock is trading higher today after a sell-side analyst issued bullish comments on the name, despite a 21 percent slide this month.<\/p>\n

\"Caesars
The Flamingo on the Las Vegas Strip, seen above. Operator Caesars is rallying on bullish analyst commentary. (Image: Las Vegas Review-Journal<\/em>)<\/figcaption><\/figure>\n

In a note to clients, Jefferies analyst David Katz reiterates a \u201cbuy\u201d rating on the Harrah’s operator. It notes that the recent weakness in the shares is likely attributable to high leverage and that the company could generate as much as $2 billion in an upcoming sale of one of its Las Vegas Strip venues.<\/p>\n

The company has indicated its intent to divest a Las Vegas Strip asset as part of its deleveraging strategy, which we have estimated should generate $2 billion,”<\/strong> said Katz.<\/p><\/blockquote>\n

Caesars CEO Tom Reeg said last year that the operator could put in motion a sale of one of its Strip assets in early 2022<\/a>. He didn’t say which one could be on the auction block, nor did Katz speculate to that effect. Caesars Palace can be removed from the group of potential properties to be sold because it’s the operator’s flagship Las Vegas venue. and it’s owned by VICI Properties (NYSE:VICI).<\/span><\/p>\n

Good Time for Caesars to Sell<\/h2>\n

Last month, MGM Resorts International (NYSE:MGM) sold the Mirage operating rights to Hard Rock International for $1.075 billion, stoking speculation that Caesars<\/a> would be able to fetch premium pricing when it unloads one of its Strip assets.<\/p>\n

\n

The Mirage sale, coupled with that of the Cosmopolitan last September, confirms there’s still a strong appetite for Strip properties, and that operators looking to part with those assets are in strong bargaining positions. That’s a plus for Caesars because as Katz notes, the operator’s leverage is high and it’s contending with $26.93 billion in liabilities<\/a>.<\/p>\n<\/div>\n

\u201cThe current levels of 7.0X lease-adjusted is likely weighing on shares, in the context of the pending asset sales,\u201d said the analyst.<\/p>\n

Caesars is likely to wrap up the sale of William Hill’s international assets to 888 Holdings in the current quarter, resulting in $2.9 billion in proceeds. That capital and the cash from selling a Las Vegas integrated resort could go a long way toward paring leverage.<\/p>\n

Digital Investments<\/h2>\n

Caesars is making it clear it intends to be a prominent player in the iGaming and sports wagering spaces, and that it will spend to that effect.<\/p>\n

\u201cIn this context, the continued investments in digital, which we reflect as $1.2B of EBITDA losses from 2H21 through 2023, offsetting the fundamental strength in regional and Las Vegas casinos,\u201d <\/strong>notes Katz.<\/p>\n

However, the analyst adds the digital opportunity for Caesars is compelling, and the operator’s spending level is appropriate. It might already be paying off, as the company is rapidly ascended to the top spot in the newly open mobile sports wagering market in New York<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment (NASDAQ:CZR) stock is trading higher today after a sell-side analyst issued bullish comments on the name, despite a 21 percent slide this month. In a note to clients, Jefferies analyst David Katz reiterates a \u201cbuy\u201d rating on the Harrah’s operator. It notes that the recent weakness in the shares is likely attributable to […]<\/p>\n","protected":false},"author":46,"featured_media":199860,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nCaesars Could Command $2 Billion In Strip Asset Sale, Says Analyst<\/title>\n<meta name=\"description\" content=\"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Could Command $2 Billion In Strip Asset Sale, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-31T18:46:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-01T18:14:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"793\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/\",\"name\":\"Caesars Could Command $2 Billion In Strip Asset Sale, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg\",\"datePublished\":\"2022-01-31T18:46:04+00:00\",\"dateModified\":\"2022-02-01T18:14:32+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg\",\"width\":1200,\"height\":793,\"caption\":\"The Flamingo on the Las Vegas Strip. Operator Caesars is rallying on bullish analyst commentary. (Image: Las Vegas Review-Journal)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Commercial Gaming\",\"item\":\"https:\/\/www.casino.org\/news\/commercial-gaming\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Caesars Still a Buy, Could Land $2B in Strip Asset Sale, Says Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Caesars Could Command $2 Billion In Strip Asset Sale, Says Analyst","description":"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/","og_locale":"en_US","og_type":"article","og_title":"Caesars Could Command $2 Billion In Strip Asset Sale, Says Analyst","og_description":"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.","og_url":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-01-31T18:46:04+00:00","article_modified_time":"2022-02-01T18:14:32+00:00","og_image":[{"width":1200,"height":793,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/","url":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/","name":"Caesars Could Command $2 Billion In Strip Asset Sale, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg","datePublished":"2022-01-31T18:46:04+00:00","dateModified":"2022-02-01T18:14:32+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Caesars could generate $2 billion by selling Las Vegas asset, use proceeds to reduce debt.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/flamingo.jpg","width":1200,"height":793,"caption":"The Flamingo on the Las Vegas Strip. Operator Caesars is rallying on bullish analyst commentary. (Image: Las Vegas Review-Journal)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/caesars-could-command-2-billion-in-strip-asset-sale-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Commercial Gaming","item":"https:\/\/www.casino.org\/news\/commercial-gaming\/"},{"@type":"ListItem","position":3,"name":"Caesars Still a Buy, Could Land $2B in Strip Asset Sale, Says Analyst"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/199859"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=199859"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/199859\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/199860"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=199859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=199859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=199859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}