Century Casinos (NASDAQ:CNTY) stockpile is taking a breather Monday, after the accompany shoemaker's last week conveniently topped Wall Street earnings before interest, taxes, depreciation, amortization, and restructuring or charter costs (EBITDAR). That sparked a 6.4 percent exchange inwards the shares, but ace psychoanalyst sees to a greater extent upside for the high-flying shares.
The regional gambling casino manipulator is higher by 146.48 percent year-to-date, good for i of the topper showings among all gaming equities. B. Riley analyst St. David Bain is come out with to a greater extent bullish commentary on Century. In a take down to clients Monday, Bain reiterates a “buy” rating on the gaming stock, piece boosting his price target area to $24. That implies upside of 52.3 percent from the Nov. 5 closemouthed and is advantageously supra the consensus sound projection of $21.
Following CNTY’s 12 percent 3Q21 EBITDAR round versus our Street-high estimate, we conjure up CY21E/CY22E/CY23E EBITDAR 6 percent/2percent/2 percent,” said Bain. “We go along to believe CNTY represents a scarce gambling casino manipulator note value romp that could potentially dual EBITDAR through organic fertilizer ontogeny domesticated acquisitions past CY23E, creating per-share note value of over $30, in our view.”
As is the caseful with so many gaming companies, particularly regional operators, Century employed cost-cutting measures like a shot following the onset of the coronavirus pandemic, leading to significant border expansion. The operator is proving expert at extending those elevated margins into the reopening phase, and analysts are taking note.
More Sparks for Century Stock
While it’s on a scintillating step this year, Century buy in doesn’t lack catalysts, which include the operator’s efforts to thrust network purchase to 1x past the oddment of this year.
“CNTY’s electric current portfolio Earnings Before Interest Taxes Depreciation and Amortization incline also couples with a high-return expanding upon throw in Missouri, its largest market, and potential divestment of its lour investor-valued Republic of Poland operation o'er time,” Bain added.
Century’s namesake venues in Cape Girardeau and Caruthersville, Mo. are bolstering the typesetter's case for the stock. Century recently landed favorable reception to fetch the Caruthersville riverboat ashore and is planning a large-scale hotel expanding upon at the venue.
The keep company is inward the cognitive operation of divesting its Republic of Poland assets, which would generate hard currency patch serving hone its focussing on North America.
Century Stock Cheap, Deals Remain Possibility
As is the typesetter's case with other small regional gambling casino operators, Century is expected to take part in industry consolidation, as B. Riley’s Bain points out. The elbow grease would be made easier with hard currency from the cut-rate sale of the Republic of Poland assets. The psychoanalyst says the company is currently reviewing multiple candidates for comprehension into its portfolio.
Century has a knack for scooping up venues competitors no more yearner need and wringing benefits out of those assets. An acquisition promulgation could arrive inward the first-class honours degree half of next year. Additionally, the carry is inexpensive relative to rivals.
“Net, operational implementation continues, multiple catalysts remain, and deal valuation remains nearly half of peers at 5.8x/5.0 CY22E/CY23E EV/EBITDA,” added Bain.