– The largest gaming operator in the US with over 50 properties.
– 50% selloff from Oct’21 highs due to recession fears/risk aversion looks unwarranted as CZS offers a stable 15% FCF yield.
– Meanwhile, the downside looks protected by CZR’s owned real estate.
– Most importantly, there is the optionality of FCF expansion through normalization of growth CAPEX, interest expense reduction through debt repayments, and digital business inflection to profitability as it benefits from i-gaming growth.
– At 15x EBITDA (4x below average peer multiple over the last decade), company is valued at $150/share.
Exp. gain: +83%
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