Casinos & Hotels
Goldman Sachs has a massive $158 price handle on Penn National Gaming stock, which was raised from $153. The much lower consensus target price is $108.85 per share. Wednesday’s closing print was $92.51, which up close to 4% for the day. The company is set to release earnings on May 6.
This is the top pick across Wall Street in the net lease group, and it is an ideal pick for more conservative investors. VICI Properties Inc. (NYSE: VICI) is a triple net lease real estate investment trust (REIT) that was spun out of Caesars Entertainment post-bankruptcy.
The company has 23 mixed-use gaming, lodging and entertainment properties in its portfolio, and a subsidiary that owns four championship golf courses. VICI also owns roughly 34 acres of undeveloped land in Las Vegas, which it leases to Caesars.
The research report had this to say:
We update our model to reflect the closing of the equity raise (69 million shares at a public offering price of $29) on 3/8/21. In addition, we roll-forward our price target by one quarter. Our revenue/EBITDA estimates remain unchanged though our Adjusted funds from operations estimates for 2021/2022 move -6%/-7% lower on the higher share count.
Investors receive a 4.32% distribution. The $32 Goldman Sachs target price ticked up to $33, while the posted consensus target is $24.50. VICI Properties stock closed trading Wednesday at $30.53 a share, and the quarterly report is slated to be released on April 29.
The massive potential for the total addressable market is more than enough reason for investors with a solid risk appetite to add one or all of these stocks to portfolios. Add in the selling over the past 60 days, and the fact that the shares all trade at the best levels in some time, investors are being offered outstanding entry points before earnings are released.