Bally’s price target lowered to $11 from $13 at Stifel

Stifel analyst Jeffrey Stantial lowered the firm’s price target on Bally’s to $11 from $13 and keeps a Hold rating on the shares. Bally’s reported a “solid Q4,” but FY24 adjusted EBITDAR guidance was established 6% below consensus at the midpoint, the analyst tells investors. Despite the FY24 guidance miss, shares were up in after-market trading, which the firm attributes to management’s comments suggesting they are “close to” securing construction financing for the Chicago permanent, adding that this is “the most salient investor concern at present.” The valuation remains attractive and the catalyst path in 2024 “does appear potentially compelling,” but relatively high net leverage, “uninspiring” regional gaming fundamentals, and potential regulatory risks in International Interactive keep the firm “cautious for now,” the analyst added.