Golden Entertainment (NASDAQ:GDEN) gunstock is upwardly a staggering 159 percent year-to-date. But that doesn’t miserly upside from here is capped, as at to the lowest degree one sell-side analyst sees the shares farther appreciating.
In a tone to clients today, Deutsche Bank analyst Carlo Santarelli reiterates a “buy” rating on the Strat owner, piece boosting his price place to $60 from $56, implying upside of more than 17 percent from the Oct. 7 close. That’s slightly beneath the Wall Street consensus of $61.50. Since May, Santarelli has boosted his terms estimation on Golden caudex troika times.
The analyst says Golden’s third-quarter trends should be “solid,” and that the stream quarter is defining upward for more of the same, owing to strength at the operator’s Las Vegas and Laughlin, Silver State venues.
Las Vegas-based Golden operates 10 casinos, 9 of which are inwards Southern Nevada, including the Strat.
Las Vegas Lifting Golden Stock
Vibrancy in Las Vegas is lifting an raiment of gaming equities this year, and Golden Entertainment is participating inwards that trend.
Santarelli says a fuller event schedule, linked with “healthy” occupancy and reservation trends, has Golden’s October looking ilk July – unity of the operator’s topper months to this gunpoint in 2021. That’s a signalise the gaming companionship could crush third-quarter earnings, and that its fourth-quarter results could surprise to the upside as well.
Speaking of Golden’s earnings trends, analysts widely look the figure to stake earnings before interest, taxes, wear and tear and amortization (EBITDA) this year through and through 2023 that pass the highs seen inwards 2019 prior to the coronavirus pandemic.
Analysts and investors also ilk the strength inward Golden’s various businesses, including its gaming route building block and PT’s Entertainment, which controls 60 bars, pubs, and occasional dining restaurants. Those are recovering strongly following 2020 shutdowns forced past the COVID-19 pandemic.
More Catalysts for Golden Stock
Up to a greater extent than 15 percent o'er the past tense month and already easy I of 2021’s top-performing gambling casino names, Golden isn’t challenged for upside catalysts.
Some analysts trust the current divvy up cost doesn’t shine the possible for Golden to set down an attractive route stage business undertake in Pennsylvania, and most agree the $1.2 billion inwards unused Las Vegas tangible landed estate the manipulator owns isn’t adequately priced into the shares either. Golden’s route concern operates inwards Montana and Nevada, with Prairie State and PA possible near-term additions.
The company generates 85 percent of its revenue from the Las Vegas locals segment, and is the dominant personnel inwards hyper-local Las Vegas gaming offerings.