Bank of America analyst Shaun Kelley has revised the price target for Churchill Downs (CHDN, Financial), lowering it from $155 to $130. Despite this adjustment, the company maintains a Buy rating on the stock in anticipation of its first-quarter performance in the gaming sector. The revision reflects a more reserved outlook due to ongoing tensions between the U.S. and China, leading to expectations that Macau's figures might lag by 5% compared to wider market predictions.
While the firm's analysis has not detected a decline in Las Vegas activity, there is an expectation that investor attention will focus significantly on any shifts in visitation patterns, bookings, cancellations, or consumer behavior at the close of March and into April. In contrast, regional markets have experienced a rise in visitation, bolstered by more favorable weather conditions in March.
Furthermore, Bank of America has adjusted its gaming sector earnings forecasts, with 2025 EBITDA projections now standing 2% below consensus estimates. This adjustment underscores a broader cautious stance on consumer spending and economic conditions within the gaming industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Churchill Downs Inc (CHDN, Financial) is $154.60 with a high estimate of $172.00 and a low estimate of $125.00. The average target implies an upside of 51.99% from the current price of $101.72. More detailed estimate data can be found on the Churchill Downs Inc (CHDN) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Churchill Downs Inc's (CHDN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Churchill Downs Inc (CHDN, Financial) in one year is $173.88, suggesting a upside of 70.94% from the current price of $101.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Churchill Downs Inc (CHDN) Summary page.
