Morgan Stanley Has Lowered Expectations for Caesars Entertainment (NASDAQ:CZR) Stock Price

Caesars Entertainment (NASDAQ:CZR) had its price objective reduced by equities researchers at Morgan Stanley from $27.00 to $25.00 in a research report issued on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would suggest a potential upside of 1.05% from the company’s current price.

Several other brokerages have also recently commented on CZR. Macquarie Infrastructure reduced their price objective on shares of Caesars Entertainment from $40.00 to $33.00 and set an “outperform” rating for the company in a research note on Wednesday, October 29th. TD Cowen reiterated a “buy” rating on shares of Caesars Entertainment in a research report on Wednesday, January 21st. JPMorgan Chase & Co. decreased their price target on Caesars Entertainment from $37.00 to $36.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 18th. Wells Fargo & Company initiated coverage on Caesars Entertainment in a research note on Tuesday, November 18th. They issued an “equal weight” rating and a $21.00 price objective for the company. Finally, Stifel Nicolaus reduced their price objective on Caesars Entertainment from $39.00 to $36.00 and set a “buy” rating for the company in a report on Wednesday, February 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $33.24.

Caesars Entertainment Stock Up 19.1%

Caesars Entertainment stock opened at $24.74 on Wednesday. The company has a debt-to-equity ratio of 3.17, a current ratio of 0.80 and a quick ratio of 0.78. Caesars Entertainment has a 1-year low of $17.86 and a 1-year high of $34.68. The company has a market cap of $5.04 billion, a PE ratio of -10.18, a price-to-earnings-growth ratio of 80.38 and a beta of 2.03. The stock’s 50 day moving average price is $22.48 and its 200 day moving average price is $23.28.

Caesars Entertainment (NASDAQ:CZR) last released its quarterly earnings data on Tuesday, February 17th. The company reported ($1.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.18) by ($1.05). The business had revenue of $2.92 billion during the quarter, compared to analysts’ expectations of $2.89 billion. Caesars Entertainment had a negative return on equity of 7.97% and a negative net margin of 4.37%.The company’s revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.05 EPS. On average, sell-side analysts predict that Caesars Entertainment will post -0.77 EPS for the current fiscal year.

Institutional Trading of Caesars Entertainment

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Capital World Investors increased its position in Caesars Entertainment by 29.8% during the 3rd quarter. Capital World Investors now owns 16,193,070 shares of the company’s stock worth $437,622,000 after purchasing an additional 3,716,148 shares in the last quarter. State Street Corp boosted its stake in shares of Caesars Entertainment by 0.8% during the 2nd quarter. State Street Corp now owns 7,569,822 shares of the company’s stock worth $214,907,000 after purchasing an additional 61,065 shares during the last quarter. Morgan Stanley grew its holdings in shares of Caesars Entertainment by 121.0% during the fourth quarter. Morgan Stanley now owns 7,141,899 shares of the company’s stock worth $167,049,000 after buying an additional 3,910,430 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its position in shares of Caesars Entertainment by 246,899,900.0% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company’s stock valued at $115,500,000 after buying an additional 4,937,998 shares during the last quarter. Finally, DAVENPORT & Co LLC lifted its stake in shares of Caesars Entertainment by 0.4% during the fourth quarter. DAVENPORT & Co LLC now owns 4,339,172 shares of the company’s stock valued at $101,797,000 after buying an additional 18,414 shares during the period. 91.79% of the stock is currently owned by hedge funds and other institutional investors.

Key Caesars Entertainment News

Here are the key news stories impacting Caesars Entertainment this week:

• Positive Sentiment: Deal chatter: Multiple reports say Caesars is evaluating takeover interest, which can reprice heavily‑levered casino equities because buyers typically offer a takeover premium. The FT/MSN report is the primary catalyst cited by market participants. Article Link
• Positive Sentiment: Operational support: Recent quarterly disclosures showed revenue growth and record digital profits/adjusted EBITDA improvement at Caesars Digital, data points investors cite to justify takeover interest and a higher equity valuation. Article Link
• Neutral Sentiment: Market mechanics: Trading was paused under an LULD volatility halt as volumes spiked, indicating the move was headline-driven and could reverse if reports don’t lead to a transaction. Article Link
• Neutral Sentiment: Unconfirmed and ongoing: Coverage stresses discussions are ongoing and no deal is assured — upside depends on whether a bidder materializes and on deal terms (price, financing). Article Link
• Negative Sentiment: Analyst stance and targets: Morgan Stanley recently cut its price target to $25 and moved to an equal‑weight rating, showing some street skepticism about sustained upside absent a confirmed bid or operational acceleration. Article Link
• Negative Sentiment: Balance sheet sensitivity: Caesars carries meaningful leverage (debt/equity and leverage metrics noted in filings), so equity value is particularly sensitive to deal financing assumptions and any disappointment in operations. This elevates downside risk if takeover interest evaporates. Article Link

Caesars Entertainment Company Profile

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah’s by William F.