Mizuho raises Churchill Downs share price target after revenue and EBITDA beat expectations

On Friday, Mizuho Securities adjusted its target price churchill downs (NASDAQ: ), a racing, gaming and gaming entertainment company, saw its shares rise to $143.00 from the previous price of $142.00. The company maintains a “buy” rating.

The revision comes after Churchill Downs reported higher-than-expected revenue and EBITDA for the latest quarter. The company's revenue was $591 million, exceeding Mizuho's forecast of $548 million, and EBITDA reached $242.5 million, exceeding the company's forecast of $214 million.

The positive financial performance prompted Mizuho to remain optimistic on the stock, citing the company's development pipeline and growing margins as key drivers.

Churchill Downs performed particularly strongly in the live and historic racing (L&HR) segment, with revenue of $100.8 million. The figure not only beat Mizuho's estimate of $86.3 million, but also beat Wall Street's consensus estimate of $89.6 million.

Mizuho's analysis highlights four key takeaways from Churchill Downs' financial performance, underscoring that the company's overall performance was better than expected. The company's maintenance of a “buy” rating reflects confidence in Churchill Downs' future performance and its potential to exceed expectations based on its current trajectory.

Investment Professional Insights

Churchill Downs (NASDAQ: CHDN ) has been showing strong financial performance, and it's reflected in InvestingPro's live data. The company has a market capitalization of $9.5 billion and a price-to-earnings ratio of 28.71, making it highly valued. On an adjusted basis for the trailing 12 months to Q1 2024, the price-to-earnings ratio is slightly lower at 25.84, which points to a positive earnings outlook as analysts upgrade earnings for the period ahead, which is worth noting InvestingPro Tip.

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The company's revenue growth has also been impressive, with growth of 24.33% in the trailing twelve months to Q1 2024 and quarterly growth of 5.61% in Q1 2024. consistent. Additionally, Churchill Downs' return on assets was 5.13%, coupled with dividend growth of 7.0% over the same period, demonstrating the company's ability to generate profits and return value to shareholders. Notably, as another InvestingPro Tip points out, Churchill Downs has raised its dividend for 13 consecutive years, demonstrating its financial health and commitment to shareholders.

Investors looking for more detailed analysis and other InvestingPro tips can find them on the platform.There are currently 10 tips left, which you can get using a discount code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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