(CercleFinance.com) – ‘Given Golden Entertainment’s strong balance sheet and strong fundamentals in regional markets, we believe the company could continue to grow more aggressively or accelerate returns to shareholders with the proceeds. of the sale of Rocky Gap’, believes Jefferies which retains its buy rating on the stock with a price target of $64.
After the sale of Rocky Gap in mid-2023, GDEN becomes almost pure-play NV gaming. According to Jefferies’ estimates, NV operations ‘represent >90% of consolidated EBITDA after the transaction’.
For the analyst, STRAT should remain the largest contributor, representing around 26% of pro forma EBITDA. Given the fundamental strength of the Las Vegas Strip, driven by strong demand for conventions and entertainment, as well as the continued recovery of international visits.
Importantly, Jefferies continues, at the current trading level, the company could repurchase nearly 7 million shares, or 20-25% of the company’s outstanding shares at present.
For FY23, the analyst expects the company to generate $1.088 billion in revenue and $280 million in adjusted revenue, up from $1.129 billion and $292.6 million previously. ‘ At the same time, we are revising our estimates for FY24 to $1.030 billion in revenue and $260 million in adjusted EBITDA. ‘
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