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Caesars Entertainment (CZR): Assessing Valuation After New Missouri Sportsbook Expansion and Digital Growth Push

Simply Wall St · 1d ago

Caesars Entertainment (CZR) just expanded its sports betting footprint into Missouri, rolling out the Caesars Sportsbook app statewide alongside new retail books. This gives investors another data point on the company’s digital growth story.

See our latest analysis for Caesars Entertainment.

The Missouri launch lands at an interesting moment for Caesars, with a 30 day share price return of 17.26 percent helping to offset a weaker year to date share price return of negative 28.69 percent and a five year total shareholder return of negative 66.75 percent. This suggests near term momentum is improving even as long term holders remain under water.

If this expansion has you thinking about where else growth and sentiment might be shifting, it could be worth exploring fast growing stocks with high insider ownership as a source of fresh stock ideas.

With shares still trading well below analyst targets despite improving digital growth, the key question now is whether Caesars remains a beaten down value play or if the Missouri sportsbook expansion means markets are already pricing in future gains.

Most Popular Narrative: 30.4% Undervalued

With Caesars shares last closing at $23.24 versus a narrative fair value of $33.37, the story hinges on digital momentum and improving profitability.

Enhanced loyalty program investments and analytics driven targeted marketing, leveraging Caesars Rewards across all channels, are increasing cross property play and customer retention; these efforts are expected to augment repeat business and customer lifetime value, supporting higher long term net margins and stable revenue growth.

Read the complete narrative.

Want to see what kind of revenue runway those loyalty economics assume, and how fast margins are expected to turn? The projections may surprise you.

Result: Fair Value of $33.37 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering debt burdens and softer regional demand could easily overwhelm digital gains if interest costs rise or leisure trends weaken further.

Find out about the key risks to this Caesars Entertainment narrative.

Build Your Own Caesars Entertainment Narrative

If the story here does not quite fit your view, or you prefer to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Caesars Entertainment.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.