Stifel starts Churchill at Buy, calls top growth story in gaming

Stifel analyst Jeffrey Stantial initiated coverage of Churchill Downs with a Buy rating and $148 price target. The analyst says Churchill is one of the best growth stories across gaming, reflecting a “best-in-class pipeline” of high return on investment expansion projects, synergy opportunity and organic growth drivers for the “nascent” historical horse racing category. The firm expects growing investor appreciation for the company’s “high-quality” Kentucky Derby asset with potential “flight-to-quality tailwinds” amid an uncertain outlook for the consumer. While horse racing viewership continues to face secular headwinds, high-growth online sports betting operators expand the total addressable market while Churchill continues to develop a “unique flywheel and moat as the market leader in live, historical, and online horse racing,” the analyst tells investors in a research note.