{"id":311727,"date":"2024-02-22T18:11:43","date_gmt":"2024-02-23T00:11:43","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=311727"},"modified":"2024-02-23T11:23:44","modified_gmt":"2024-02-23T17:23:44","slug":"churchill-downs-stock-still-beloved-on-wall-street","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/","title":{"rendered":"Churchill Downs Stock Primed for Upside as New Venues Come Online"},"content":{"rendered":"

Shares of Churchill Downs (NASDAQ: CHDN) closed slightly higher Thursday after the gaming company reported solid fourth-quarter results late Wednesday. But with those numbers in the past, analysts are turning to the operator\u2019s new venues and the potential impact those properties could have on the stock price.<\/p>\n

\"Churchill
Racehorses cross the finish line at Ellis Park. An analyst remains bullish on Churchill Downs stock. (Image: Ellis Park)<\/figcaption><\/figure>\n

Such venues include The Rose Gaming Resort in Dumfries, Va., for which the operator recently won approval to proceed with phase one of the project. Churchill Downs is also slated to open Owensboro Racing & Gaming in Owensboro, Ky. in early 2025. That venue will operate as an annex of Ellis Park Racing and Gaming<\/a>, and serve to fund purses for horse races at the track.<\/p>\n

Although concerns about the state of the domestic horseracing business linger, live and historical racing (L&H) remains a source of strength for Churchill Downs.<\/p>\n

Management cited broad-based strength across L&H, with nearly all property revenues beating our model,\u201d<\/strong> wrote Stifel analyst Jeffrey Stantial in a note to clients. \u201cBased on our anecdotal checks, we sense this partly reflects mis-modeled easy weather comps in December, as well as more impactfully tailwinds from skill-based games being shut down in mid-November & continued ramp at key Kentucky properties.\u201d<\/strong><\/p><\/blockquote>\n

Stantial rates Churchill Downs stock a \u201cbuy,\u201d with a $150 price target.<\/p>\n

Churchill Downs Stock A Favorite<\/h2>\n

Analysts are bullish on Churchill Downs, and that bullishness abounds even though the operator has no Las Vegas exposure, nor is it a major player in the realm of online sports betting.<\/p>\n

\n

Catalysts include an extensive pipeline of high return on investment projects, benefits from the Exacta and P2E acquisitions, and the emerging growth story tied to historical horse racing<\/a> (HHR) machines. Eight of the 10 analysts covering the stock rate it a \u201cstrong buy\u201d or \u201cbuy,\u201d and the consensus price target of $143 implies 19.31% upside from Thursday\u2019s close.<\/p>\n<\/div>\n

Growth in the operator\u2019s TwinSpires unit and smart acquisitions are among the reasons why Churchill Downs is among Wall Street\u2019s favorite gaming names.<\/p>\n

\u201cThe TwinSpires segment also beat nicely with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $34.9M coming in +13%\/+12% to our model\/Consensus. Revenues were +2% to our model, and inline with Consensus. Adj. EBITDA margins of 33.5% were well ahead of our\/Street’s 30.2%\/30.1%, likely reflecting mis-modeled mix impact from Exacta,\u201d added Stantial.<\/p>\n

Other Potential Sparks<\/h2>\n

While the first quarter isn\u2019t over, Churchill Downs\u2019 second-quarter earnings could be a spark for the shares. That’s because the Kentucky Derby is slated for May, and the hotel at the operator\u2019s Terre Haute Casino Resort in Indiana is expected to open later that month.<\/p>\n

\n

While the Derby is consistently viewed as a marquee event for Churchill Downs, this year will be the first edition of the Triple Crown race that tests new amenities at the operator\u2019s eponymous track. Those include additional seating, a fresh paddock, and offerings for VIPs<\/a>.<\/p>\n<\/div>\n

\u201cFor CHDN’s KY properties, Q4 results appear fairly inline with our model normalized for mis-modeled easy weather comps. Turfway, Newport, Ellis, & Derby City Gaming continue to ramp nicely post-opening\/acquisition\/growth capex, while the recently opened Derby City Downtown should see step function growth in Q2 as summer tourism in Louisville begins, while the Derby also drives high visitation,\u201d concluded Stantial.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Churchill Downs (NASDAQ: CHDN) closed slightly higher Thursday after the gaming company reported solid fourth-quarter results late Wednesday. But with those numbers in the past, analysts are turning to the operator\u2019s new venues and the potential impact those properties could have on the stock price. Such venues include The Rose Gaming Resort in […]<\/p>\n","protected":false},"author":46,"featured_media":278714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,14577,69293,1074],"tags":[81903,81900,81890,80968],"acf":[],"yoast_head":"\nChurchill Downs Stock Still Beloved On Wall Street<\/title>\n<meta name=\"description\" content=\"Churchill Downs Stock Primed for Upside as New Venues Come Online.\" \/>\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\/churchill-downs-stock-still-beloved-on-wall-street\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Churchill Downs Stock Still Beloved On Wall Street\" \/>\n<meta property=\"og:description\" content=\"Churchill Downs Stock Primed for Upside as New Venues Come Online.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/\" \/>\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=\"2024-02-23T00:11:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-23T17:23:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/06\/0618_ky_ellis_park-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\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\/churchill-downs-stock-still-beloved-on-wall-street\/\",\"url\":\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/\",\"name\":\"Churchill Downs Stock Still Beloved On Wall Street\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/06\/0618_ky_ellis_park-1.jpg\",\"datePublished\":\"2024-02-23T00:11:43+00:00\",\"dateModified\":\"2024-02-23T17:23:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Churchill Downs Stock Primed for Upside as New Venues Come Online.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-stock-still-beloved-on-wall-street\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/06\/0618_ky_ellis_park-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/06\/0618_ky_ellis_park-1.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Racehorses cross the finish line at Ellis Park. 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