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RBC bumps Gaming and Leisure stock price target by $1, keeps outperform rating

Published 29/07/2024, 17:00
GLPI
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On Monday, RBC Capital Markets adjusted its price target for Gaming and Leisure (NASDAQ:GLPI) Properties Inc (NASDAQ:GLPI), a real estate investment trust (REIT) specializing in casino properties, raising it to $53.00 from the prior target of $52.00. The firm has also reaffirmed its Outperform rating on the stock.

The revision follows Gaming and Leisure's recent financial report, which RBC Capital found to align with their projections. The report's significance was supplemented by insights from the company's management regarding various strategic maneuvers, particularly those involving Bally's Corporation.

Management's discussion highlighted the progress on the anticipated Chicago casino deal, suggesting it may soon reach completion. Additionally, the ongoing merger between Bally's and Standard General was noted, with expectations set for minimal impact from this development. Moreover, the equity aspect of Bally's acquisitions has been somewhat de-risked due to the sales made through the At-The-Market (ATM) offering in July.

RBC Capital's analyst pointed out that, based on these updates, their estimates for Gaming and Leisure remain largely unchanged. The commentary from the company's management provided clarity on the status and implications of the Bally's-related transactions, which seem to have a neutral effect on the firm's financial outlook.

Gaming and Leisure Properties Inc, as a key player in the casino real estate sector, continues to be monitored by investors for its strategic partnerships and growth potential. The price target update by RBC Capital reflects the company's stable performance and ongoing developments within its portfolio of properties and partnerships.

In other recent news, Gaming and Leisure Properties Inc. (GLPI) reported a $24 million increase in total income from real estate compared to the same quarter in the previous year. Additionally, GLPI detailed a $1.6 billion transaction with Bally's, which will be funded through a combination of debt and equity.

The full-year 2024 AFFO (Adjusted Funds From Operations) guidance is projected to be between $3.74 and $3.76 per diluted share and OP units. GLPI maintains its focus on existing cash flows while exploring capital deployment opportunities.

GLPI is also actively involved in the construction and design process of the Chicago project. Despite acknowledging slight declines in rent coverage ratios, the company expressed confidence in the profitability and reliability of its tenants and their leases.

These are among the recent developments for GLPI.

InvestingPro Insights

With Gaming and Leisure Properties Inc (NASDAQ:GLPI) in focus following RBC Capital Markets' updated price target, a glance at the real-time data and InvestingPro Tips can provide additional context for investors. The company's market capitalization stands at a robust $13.97 billion, reflecting its significant presence in the casino real estate sector. The P/E ratio, a measure of the stock's valuation, is currently at 17.13, indicating a balance between its share price and earnings performance. Furthermore, the company's revenue growth has been positive, with a 7.47% increase over the last twelve months as of Q2 2024.

InvestingPro Tips suggest that GLPI's stock might be in overbought territory, as indicated by the RSI, which is a technical analysis indicator. However, on the fundamental side, the company's liquid assets surpass its short-term obligations, suggesting financial resilience. Moreover, with the stock trading near its 52-week high and a strong return over the last three months, the company's recent performance has been promising for investors. For those interested in more detailed analysis and additional tips, InvestingPro offers a comprehensive suite of tools and insights. For instance, there are five more InvestingPro Tips available for GLPI, which could further inform investment decisions.

To explore these insights and tips, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This promotion enhances the value proposition for investors looking to deepen their understanding of market dynamics and individual stock performances.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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