Century Stock Has Signficant Upside Ahead, Says Analyst

Posted on: May 1, 2021, 12:54h. 

Last updated on: May 1, 2021, 12:54h.

After soaring more than 23 percent this week, Century Casinos (NASDAQ:CNTY) is up 106 percent year-to-date — easily making it one of the best-performing gaming equities.

Century stock
Cripple Creek, Colo., home to a Century Casinos venue. An analyst sees more upside ahead for the stock. (Image: Pinterest)

Those just now discovering the regional casino operator can take heart because analysts see more upside coming for the shares. In fact, it was analyst commentary that sparked some of the stock’s surge this week as B. Riley’s David Bain initiated coverage of the gaming equity with a “buy” rating and an $18 price target. That implies appreciation potential of about 38 percent from the April 30 close.

CNTY’s properties are locals-based, which we believe are benefiting from multiple drivers in the current environment, including the vaccine drive and fiscal stimulus,” said Bain in a note to clients.

Those factors coupled with the stock’s ascent confirm analysts and investors are prizing Century for its US exposure because the shares are soaring even as the operator contends with temporary closures of venues in Canada and Poland.

In the US, Century’s roster consists of a pair of casinos in its home state of Colorado, as well as Missouri and West Virginia.

Century Stock Could Be Moved by Acquisitions

While Century’s portfolio of domestic properties is small compared to some rivals in the regional casino space, the operator is beloved by some analysts because management has a reputation for effectively integrating bolt-on acquisitions.

At the end of last year, the company had $63.4 million in cash on hand and with Century stock soaring, it has currency to go shopping. Plus, there’s the widely expected sale of its Poland assets, which should bring in extra cash for deal-making. B. Riley’s Bain says the gaming company could imminently return to its acquisitive ways and that could potentially trigger a more than doubling of the share price.

“CNTY represents a scarce casino operator value play that could potentially double earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) through domestic acquisitions by CY23E, creating per-share value of over $28, in our view,” said the analyst. “We believe CNTY’s next U.S. casino acquisition will be announced before the end of 3Q21, creating an estimated per-share value of $4, not reflected in our price target.”

Bain says Century is likely reviewing “multiple US regional casino acquisition opportunities,” but he didn’t get into specifics.

More Catalysts for Century Stock

Another imminent catalyst for Century is implementation of higher betting limits and introduction of new table games in Colorado. That came about via passage of Amendment 77 last November and analysts and operators believe the removal of the $100 bet cap will help casinos in the state capture a longer staying, higher end clientele.

Another advantage for Century is that its domestic venues are heavily frequented by locals — demographics that are looking to spend stimulus cash and get out of the house after getting coronavirus vaccinations.

We believe locals casinos are currently benefiting from pent-up demand, increased capacity allowances, the COVID vaccine rollout (driving a key older demographic back to the casino), close-to-home entertainment, fiscal stimulus, and structural margin augmentation,” said Bain.

540 Comments

  1. I have been surfing online more than 2 hours today, yet I never found any interesting article like yours.
    It is pretty worth enough for me. In my view, if all website
    owners and bloggers made good content as you
    did, the net will be a lot more useful than ever before.

  2. It is the best time to make some plans for the future and it’s time to be happy.

    I’ve read this post and if I could I wish to suggest you few interesting things or advice.
    Perhaps you can write next articles referring to this article.
    I want to read more things about it!

  3. I’ll immediately snatch your rss as I can’t in finding your
    e-mail subscription link or newsletter service. Do you have any?

    Please allow me recognize so that I may subscribe.
    Thanks.

  4. I have been surfing online greater than three hours nowadays, yet I by no means found any attention-grabbing article like
    yours. It’s lovely value enough for me. Personally, if all site owners and
    bloggers made just right content as you probably did, the web might be much more helpful than ever before.

  5. hello there and thank you for your information – I have certainly picked up anything new from right here. I did however expertise several technical issues using this site, since I experienced to reload the website lots of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Well I’m adding this RSS to my e-mail and can look out for much more of your respective intriguing content. Make sure you update this again very soon..

  6. It is the best time to make some plans for the future and it is time to be happy.

    I’ve read this post and if I could I desire to suggest you few interesting things or suggestions.
    Maybe you can write next articles referring to this article.
    I want to read even more things about it!

  7. I will right away seize your rss feed as I can’t to find your e-mail subscription hyperlink or newsletter service.
    Do you’ve any? Kindly allow me realize in order that I could subscribe.
    Thanks.

  8. It’s appropriate time to make a few plans for the
    future and it’s time to be happy. I’ve read this publish and
    if I could I desire to suggest you few attention-grabbing issues or suggestions.
    Perhaps you could write next articles referring to this article.

    I desire to read even more issues approximately it!

  9. It’s appropriate time to make some plans for
    the future and it is time to be happy. I have read
    this post and if I could I wish to suggest you some interesting things
    or tips. Maybe you could write next articles referring to this
    article. I desire to read even more things about it!

  10. Its such as you read my mind! You appear to grasp
    a lot about this, such as you wrote the ebook in it or something.
    I believe that you simply could do with some p.c.

    to force the message house a little bit, but other than that, this is wonderful blog.
    An excellent read. I’ll definitely be back.

  11. It is the best time to make some plans for the future
    and it’s time to be happy. I’ve read this post and
    if I could I want to suggest you some interesting things or suggestions.
    Maybe you can write next articles referring to this article.
    I wish to read more things about it!

  12. I will right away grab your rss as I can’t in finding your
    email subscription hyperlink or newsletter service.
    Do you have any? Kindly let me realize in order that I may
    subscribe. Thanks.

12 Trackbacks / Pingbacks

  1. keto coffee recipe
  2. can you buy cialis over counter mexico
  3. online dating older gay men
  4. buy cheap generic cialis
  5. buy viagra cheap online uk
  6. cialis 10 mg
  7. male erection pills
  8. buy viagra thailand
  9. buy viagra yahoo answers
  10. order viagra united states
  11. mr vegas online casino
  12. sex games.

Leave a Reply

Your email address will not be published.


*