Twin River Worldwide Holdings announced preliminary results for 3Q and raised capital through issuing senior notes. The gaming company, which owns and manages 9 casinos, expects 3Q revenues between $100 million and $130 million. Wall Street analysts expect the company to report revenues of $105 million.
Twin River (TRWH) projects adjusted EBITDA to be in the range of $30-$40 million. The company said it will generate positive cash flow during the quarter and end 3Q with liquidity of over $360 million. It anticipates releasing 3Q results in late October or early November 2020.
Additionally, Twin River issued senior notes worth $125 million, carrying an annualized interest rate of 6.75% with a 2027 maturity. The offering is projected to close on October 9. Twin River stated that net proceeds from the senior notes offerings will be used for general corporate purposes. (See TRWH stock analysis on TipRanks)
On Oct. 2, Truist Financial analyst Barry Jonas raised the stock’s price target to $32 (25.6% upside potential) from $30 and reiterated a Buy rating after the company announced the acquisition of Jumer’s Casino & Hotel in Rock Island, Illinois for $120 million in cash. Jonas said that the transaction is a “smart” diversification play and believes that it should be accretive to his price target multiple.
Currently, the Street has a bullish outlook on the stock, with a Strong Buy analyst consensus. The average price target of $33.33 implies upside potential of about 30.8% to current levels. Shares of Twin River are down marginally by 0.7% so far this year.
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