Stifel analysts have trimmed their price objective for Caesars Entertainment Inc. to $36 from $39, while leaving their rating on the shares at Buy. The firm’s updated target equates to about a 66% potential gain from Caesars’ most recent trading level of $21.63. Shares of the company are trading near the 52-week low of $17.86.
According to InvestingPro data cited in the analyst commentary, Caesars looks undervalued on a Fair Value basis. Stifel pointed to the company’s apparent free cash flow strength but warned that headline free cash flow yields in excess of 20% can reflect unrealistic assumptions. The firm described consensus estimates as generally realistic and, in its view, achievable given current market levels.
InvestingPro figures referenced by the analysts show Caesars generated $380 million in levered free cash flow over the last twelve months, producing a free cash flow yield of 9% over that period. Stifel also reiterated its expectation that Caesars should be able to produce more than $4 per share in free cash flow in 2026. The firm said that this potential cash generation is not being fully reflected in the company's current market valuation.
At the same time, Stifel acknowledged broad skepticism among investors toward Caesars following a pattern of disappointments. The company’s share price has fallen approximately 52% over the past year and remains volatile, with a reported beta of 1.99, underlining the market’s ongoing doubts about the recovery story.
Crucially, Stifel’s favorable cash flow forecast assumes that conditions on the Las Vegas Strip do not undergo a full rollover or a pronounced deterioration from the present environment. That assumption factors into the firm’s assessment that current trading levels understate future free cash flow potential.
Caesars’ own quarterly report provided a mixed picture. In the fourth quarter, the operator highlighted robust results in its digital betting business, but reported a larger-than-expected loss on a per-share basis. The company posted a net loss of $1.23 per share, compared with analysts’ consensus expectation for a loss of $0.12 per share. Revenue for the quarter totaled $2.92 billion, slightly ahead of the consensus estimate of $2.9 billion, and represented a same-store revenue increase of 4.4% year-over-year.
Other brokerage activity mirrored some of Stifel’s recalibration. Citizens trimmed its price target for Caesars from $37 to $34 while maintaining a Market Outperform rating. That firm pointed to ongoing weakness in demand among lower-end customers - a trend that it noted was consistent with commentary from other industry operators. Citizens also said the timing for a rebound remains uncertain, citing no material improvements in booking patterns and weaker mid-week visitation.
Overall, the latest analyst moves and the company’s reported quarter paint a picture of solid cash flow potential counterbalanced by investor skepticism and uneven demand dynamics across customer segments. These dynamics are central to how market participants are valuing Caesars today.