{"id":117407,"date":"2019-10-16T08:47:47","date_gmt":"2019-10-16T15:47:47","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=117407"},"modified":"2019-10-16T11:29:11","modified_gmt":"2019-10-16T18:29:11","slug":"eldorado-shares-look-good-more-savings-are-coming-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/","title":{"rendered":"Eldorado Resorts A ‘Must-Own’ Heading Into 2020, Caesars Deal Cost Savings Could Top Estimates, Says Analyst"},"content":{"rendered":"

Eldorado Resorts, Inc. (NASDAQ:ERI) is a \u201cmust-own name\u201d heading into next year, and the company’s goal of trimming at least $500 million in costs via its $17.3 billion takeover of Caesars Entertainment Corp. (NASDAQ:CZR) can be met and probably topped, according to Stifel analyst Steven Wieczynski.<\/p>\n

\"\"
Eldorado Resorts could realize better-than-expected savings in the Caesars deal, making the stock a must-own. (Image: Travel Zoo)<\/figcaption><\/figure>\n

Shares of the regional gaming operator were drubbed following the June announcement of the acquisition offer for Caesars, and while Eldorado stock remains<\/a> 23 percent below its 52-week high, there have recently been signs of life, as the name has rallied nearly 10 percent over the past month.<\/p>\n

Wieczynski believes investors \u201ccontinue to sit on the sidelines<\/strong>\u201d regarding Eldorado stock, waiting for certain milestones in the Caesars deal to be achieved. The analyst did not identify specific landmarks, but he did say market participants could revisit Eldorado shares as the deal nears completion, something he forecasts as happening in February or March.<\/p>\n

Once investors start to understand the strength in the free cash flow (FCF) generation of the combined entity, at that point, we believe the equity will start to rerate,\u201d said the Stifel analyst. \u201cWe believe the market is dramatically discounting the potential value creation resulting from a successful CZR integration.\u201d<\/p><\/blockquote>\n

Investors from both companies are scheduled to meet in Nevada next month<\/a> to vote on the transaction. Following that, regulators in some states, namely New Jersey, are expected to examine Eldorado’s buyout of Caesars to ensure the combination isn’t anti-competitive <\/a>and doesn’t present geographic concentration risk.<\/p>\n

Saving Cash<\/h2>\n

Eldorado management has long targeted $500 million in savings through the Caesars acquisition, a number some on Wall Street have voiced skepticism about. Wieczynski views that goal as not just achievable, but beatable.<\/p>\n

\n

\u201cThough some investors have concerns over the achievability of management\u2019s $500M synergy target, we actually believe upside to the target could emerge in relatively short order,\u201d said the analyst.<\/p>\n<\/div>\n

He adds that Eldorado’s move to sell three Harrah\u2019s venues to Vici Properties Inc. (NYSE:VICI), announced the same day as the Caesars offer<\/a>, is a \u201csignificant value unlock\u201d and the magnitude of those sales appears to be \u201clost on ERI’s equity investors.\u201d<\/p>\n

Finding Inspiration<\/h2>\n

On Tuesday, MGM Resorts International (NYSE:MGM) announced a sale-leaseback<\/a> deal for the Bellagio Blackstone Group Inc. (NYSE:BX) for $4.25 billion and the sale of Circus Circus to Phil Ruffin for $825 million.<\/p>\n

Wieczynski believes those deals could provide a template for Eldorado, should it move forward with selling one or two of Caesars’ Strip properties.<\/p>\n

\u201cMost importantly, if you looked at what MGM just sold its Circus-Circus asset for, and the land under Bellagio for, you would have to say ERI is in a great position to monetize one, maybe even two, possible Strip assets at some point in the near future,\u201d said Wieczynski.<\/strong><\/p>\n

Eldorado has not identified specific Strip assets that could be sold. But as part of the aforementioned agreement with Vici, the real estate company has rights of first refusal should the Flamingo Las Vegas, Bally\u2019s Las Vegas, Paris Las Vegas or Planet Hollywood Resort & Casino come up for sale.<\/p>\n

If Vici acquires one of those venues, it would also have initial bidding rights for another transaction involving the remainders of that group and the LINQ Hotel & Casino.<\/p>\n

Wieczynski reiterated a \u201cbuy\u201d rating on Eldorado stock, but slightly reduced his price forecast on the name to $57 from $58.<\/p>\n","protected":false},"excerpt":{"rendered":"

Eldorado Resorts, Inc. (NASDAQ:ERI) is a \u201cmust-own name\u201d heading into next year, and the company’s goal of trimming at least $500 million in costs via its $17.3 billion takeover of Caesars Entertainment Corp. (NASDAQ:CZR) can be met and probably topped, according to Stifel analyst Steven Wieczynski. Shares of the regional gaming operator were drubbed following […]<\/p>\n","protected":false},"author":46,"featured_media":117411,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33810,32093],"tags":[],"acf":[],"yoast_head":"\nEldorado Shares Look Good, More Savings Are Coming, Says Analyst<\/title>\n<meta name=\"description\" content=\"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eldorado Shares Look Good, More Savings Are Coming, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-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=\"2019-10-16T15:47:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-16T18:29:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\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=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/\",\"name\":\"Eldorado Shares Look Good, More Savings Are Coming, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg\",\"datePublished\":\"2019-10-16T15:47:47+00:00\",\"dateModified\":\"2019-10-16T18:29:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg\",\"width\":1500,\"height\":750,\"caption\":\"Eldorado Resorts could realize better-than-expected savings in the Caesars deal, making the stock a must own. (Image: Travel Zoo)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mergers and Acquisitions\",\"item\":\"https:\/\/www.casino.org\/news\/mergers-and-acquisitions\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Eldorado Resorts A ‘Must-Own’ Heading Into 2020, Caesars Deal Cost Savings Could Top Estimates, 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":"Eldorado Shares Look Good, More Savings Are Coming, Says Analyst","description":"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Eldorado Shares Look Good, More Savings Are Coming, Says Analyst","og_description":"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.","og_url":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2019-10-16T15:47:47+00:00","article_modified_time":"2019-10-16T18:29:11+00:00","og_image":[{"width":1500,"height":750,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.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":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/","url":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/","name":"Eldorado Shares Look Good, More Savings Are Coming, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg","datePublished":"2019-10-16T15:47:47+00:00","dateModified":"2019-10-16T18:29:11+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Eldorado Resorts is a must-own among regional gaming stocks, and the company can realize more cost savings than expected in its Caesars acquisition.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/CP2.jpg","width":1500,"height":750,"caption":"Eldorado Resorts could realize better-than-expected savings in the Caesars deal, making the stock a must own. (Image: Travel Zoo)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/eldorado-shares-look-good-more-savings-are-coming-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Mergers and Acquisitions","item":"https:\/\/www.casino.org\/news\/mergers-and-acquisitions\/"},{"@type":"ListItem","position":3,"name":"Eldorado Resorts A ‘Must-Own’ Heading Into 2020, Caesars Deal Cost Savings Could Top Estimates, 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\/117407"}],"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=117407"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/117407\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/117411"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=117407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=117407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=117407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}