Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Churchill Downs Gets Macquarie Boost

Published 18/06/2021, 16:57
Updated 18/06/2021, 16:57
© Reuters.

© Reuters.

By Christiana Sciaudone

Investing.com --  Churchill Downs (NASDAQ:CHDN) got a buy rating from Macquarie as the firm initiates coverage. 

Shares were little changed.

The firm placed a price target of $254 on the stock, a Street-high according to data complied by Investing.com. 

"Churchill Downs owns one of the most iconic assets in the United States, Churchill Downs Racetrack, home to the Kentucky Derby, the longest running sporting event in the country. The irreplaceable asset, which has historically generated ~25% of company EBITDA in a single day, has few true comps and we believe it should garner a premium valuation multiple even to a comp set of luxury and unique brands across the globe," the firm wrote in a note. 

Churchill Downs is a racing, online wagering and gaming entertainment company, and owns and operates three pari-mutuel gaming entertainment venues in Kentucky, as well as TwinSpires, one of the largest online horse race wagering, online sportsbook and iGaming platforms in the U.S. The company also has about 11,000 slot machines and video lottery terminals and 200 table games in eight states.

Sales have recovered steadily throughout the pandemic after an initial hit. 

"Separately, an underappreciated part of the investment story, in our view, is the growth through the historical racing machines (HRM) in KY," the firm wrote in a note.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.