Full House Resorts price target raised to $7 from $6 at JMP Securities

JMP Securities raised the firm’s price target on Full House Resorts to $7 from $6 and keeps an Outperform rating on the shares. The firm expects Q2 results to be “more of the same,” with revenue trending up 2% in regionals, but not enough to offset the increasing costs, the analyst tells investors in a research note. Gaming companies will start to lap the start of the weakness at the lower end of the database, weather-related events, and inflationary impacts on the cost structure, while spend per adult remains consistent, and the year over year easing from these factors will result in a modest uptick in 2H24 revenue, driving an improved profitability outlook for gaming stocks, trading near five-year lows for valuation, JMP says.