Published on: November 29, 2024, at 02:29h.
Last updated on: November 29, 2024, at 02:29h.
Century Casinos’ (NASDAQ: CNTY) stock has seen a 36% surge this month, with analysts predicting further upside potential due to the success of the operator’s Missouri and Nevada gaming venues.
In a recent note, Stifel analyst Jeffrey Stantial reaffirmed a “buy” rating on the stock with a $5 price target, suggesting a 10.1% upside from the closing price on Nov. 29. He highlighted the positive performance of Century’s renovated property in Caruthersville, Mo., and the revenue stabilization at the Nugget in Sparks, Nevada as key factors driving the stock.
CNTY’s Caruthersville boat-to-land conversion, which cost $52 million, has seen strong visitation and spending trends since opening,” noted Stantial.
Last month, the Missouri Gaming Commission approved the conversion of the last riverboat casino in the state into a land-based gaming venue, including a new hotel.
Positive Signs for Century in Nevada
Century’s acquisition of the Nugget Sparks casino in early 2022 initially faced challenges, but recent efforts have led to an improvement in operations. Management changes and enhancements in gaming offerings have contributed to the positive momentum at the Nevada property.
Recent improvements at Nugget Sparks have been encouraging, with consistent growth in margins and revenue. Management is optimistic about the future growth potential driven by market fundamentals and group bookings.
Nugget’s focus on conventions and group meetings is a strength for Century, which could lead to additional benefits by late 2025 or early the following year.
Potential Sale of Poland Assets
Century’s Poland gaming assets may be up for sale following the country’s relicensing process. The stability of the licenses has attracted interest from potential buyers, with transactions expected to enhance Century’s financial position.
Stantial suggested that a sale could generate proceeds of around $30 million, which could be used to reduce debt. Simplifying the investment thesis for US-focused investors.