Caesars price target lowered to $52 from $55 at Macquarie

Macquarie analyst Chad Beynon lowered the firm’s price target on Caesars to $52 from $55 and keeps an Outperform rating on the shares following quarterly results. The firm notes the company reported a 3% EBITDAR beat in Q2 led by Vegas. Ongoing headwinds are expected to continue in Q3 before trends improve in Q4 with the opening of New Orleans and the Danville permanent, Macquarie adds. While some remain concerned by leverage and Vegas/Regional growth, the firm believes Caesars’ position in Vegas is strong and expects the story will remain driven by the company’s ability to improve Digital share and profits. Overall, Macquarie thinks Caesars has an attractive risk/reward digital profile given its large database, low marketing/promo intensity and improving tech.