Century Casinos (CNTY) Stock Forecast & Price Target

Century Casinos Inc. has showcased a strong performance in key segments, with EBITDAR at the Cape Girardeau location increasing by 11% year-over-year, driven primarily by higher hotel and food and beverage revenues, reflecting successful expansion efforts. The company's EBITDAR growth, particularly in the U.S. segment, highlights a 27% year-over-year increase, indicating solid operational progress and positive revenue contributions from recently acquired properties. Additionally, Century Casinos is on track to generate free cash flow in 2025, forecasted to improve despite previously challenging conditions, supported by the anticipated positive impacts of better weather and strategic property enhancements.

The financial outlook for Century Casinos Inc. appears negative, primarily due to disappointing earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) metrics, which fell short of projections by 5%, reflecting a year-over-year decline of 17%. Challenges such as declining revenues attributed to previous management's under-scheduling of conventions, along with headwinds in high-end consumer spending, have further compounded the company's struggles. Additionally, the competitive pressures from states legalizing iGaming have resulted in cannibalization of slot play, adversely impacting growth prospects in the company's various operating regions.