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FINWIRES

Research Alert: CFRA Maintains Hold Opinion On Shares Of Caesars Entertainment

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $4 to $29, based on 8.1x our 2026 adjusted EBITDA estimate, slightly below the company's three-year average forward P/E multiple of 8.4x. We maintain our 2026 and 2027 EPS estimates of ($0.25) and ($0.15), respectively. CZR reported Q1 2026 results that showed modest improvement across key metrics, with total net revenues increasing to $2.87B (+2.7% Y/Y) and net loss narrowing to $98M from $115M in the prior year. The company's adjusted EBITDA remained essentially flat at $887M (+0.3% Y/Y), reflecting mixed segment performance despite overall revenue growth. Caesars Digital delivered standout performance with record Q1 results, generating revenues of $374M (+11.6% Y/Y) and adjusted EBITDA of $69M (+60.5% Y/Y). This segment continues to be the primary growth driver for the company, with management highlighting the strong momentum in the digital betting and iGaming platform. We remain neutral and see the valuation as fair at 8x consensus EBITDA estimates for 2026.

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