Caesars shares can more than double from here, says B. Riley

B. Riley analyst David Bain raised the firm’s price target on Caesars Entertainment to $111 from $102 and keeps a Buy rating on the shares. The analyst updated Caesars’ valuation by segment, believing using EBITDA versus EBITDAR for valuation is appropriate given better expression of cash flow. At the midpoint, the firm estimates the company’s land-based portfolio is worth $91 per share, or 72% higher than Friday’s close, implying its digital business carries a negative value. However, Riley estimates the digital value at $20 per share value when using a DraftKings-like valuation. It believes shares of Caesars can more than double from current levels.