Golden Entertainment Named a Leader in Casino Stocks by CBRE Equity Research

CBRE Equity Research resumed its coverage of local Las Vegas gaming stocks.

Analyst John DeCree and his team said they are generally bullish on the long-term long-term growth trend of the Las Vegas local market.their confidence It is said to be supported by the massive migration of the population to Las Vegas, especially among the high-income population, and the rapidly diversifying economy that no longer relies solely on the Las Vegas Strip.

Despite these positives, the increased risk of a U.S. recession, rising interest rates, and a difficult FY23 comparison for the local Las Vegas market keep CBRE generally cautious in the near term.

Digging all over the group, CB Richard Ellis recommended Golden Entertainment (Nasdaq:geoelectricity), which has a Buy rating for its particularly misplaced valuation, underleveraged balance sheet and upside earnings potential, given the strong event calendar in Las Vegas in FY23 and FY24.

“Furthermore, following the sale of Rocky Gap, GDEN has unique financial flexibility and can begin returning substantial capital to shareholders in the form of buybacks and dividends, which should translate into meaningful value given the company’s limited capital base.”

Additionally, CBRE believes the company would be an ideal acquisition target for a larger strategic gaming operator.

GDEN has a price target of $58, up more than 40%.

At the same time, CBRE began reporting on Red Rock Resort (RRR) and Boyd Gaming Corporation (BYD) with a Hold rating.

compared to GDEN, RRR and BYD are tied for growth, profitability and valuation metrics.