Caesars' Strong 1Q Vegas Hotel Performance Not Enough to Garner a Competitive Advantage
We plan a low-single-digit percentage increase to our $10.30 per share valuation for no-moat Caesars, due to strong first-quarter Las Vegas hold (house played lucky) and hotel performance (occupancy up 250 basis points to 95%). Trading at 10 times our 2019 EV/EBITDA we see shares undervalued.Las Vegas (45% of 2018 total net sales) revPAR growth of 4.9% surpassed no-moat MGM's 3.7% lift in the quarter, although we believe the latter's higher mix of VIP (weak overseas China play) and convention (...
Caesars Entertainment is a holding company that provides casino-entertainment and hospitality services. The company's facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. In addition to its brick and mortar assets, the company operates an online gaming business that provides real money games in certain jurisdictions and provides retail sports wagering in certain jurisdictions. The company's consolidated business is composed of five complementary businesses: casino entertainment, food and beverage, rooms and hotel, casino management services, and entertainment and other business operations, including mobile sports betting.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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