On Thursday, analysts focused on Century Casinos, Inc. (NASDAQ: CNTY) shares and rated them favorably. According to Macquarie gaming and leisure analyst Chad Beynon, Century has the most attractive shares in the Colorado gaming industry.
Beynon rating of Century Casinos’ share price of $11 outdid the current market price by 25 percent. According to Casino.org, Century has finalized the purchase of three Eldorado properties, they include:
- Virginia Mountaineer Casino Racetrack and Resort
- Missouri’s Isle Casino Cape Girardeau
- Missouri’s Lady Luck Casino
Beynon believes that Century will continue with acquisition after purchasing three properties from Eldorado.
“Over the last ten years, CNTY doubled the company’s earnings before interest, taxes, depreciation, amortization, and depreciation, and restructuring on rent costs in 2015 and will again in 2020, in our view. This is in part due to the $107 million acquisition of three older Eldorado Resorts properties”, said Macquarie analyst.
Another analyst recently claimed that Century acquisition of the three properties signifies the company effort to expand beyond Colorado, and the share prices reflect the same. Beynon agreed that Century Casinos shares would remain at a micro-cap rating, a market segment that trades on premium valuation due to high growth prospects. Beynon added that the company is rated favorably over other equal firms.
The onset of sports betting in Colorado has seen Century shares price raised by 13 percent in December. Century is among the three states casinos that have been approved to operate or sell sports licenses, and according to Beynon, that could provide a 3 to 10 percent growth.
The onset of 2020 will see Century ability bolstered by the free cash flow; Beynon believes that the newly acquired properties could see Century free cash flow increased by 21 cents per share. When the balance sheet is stable, then Century will be in a position to make more acquisitions and bolster its domestic portfolio.