Century Casinos (NASDAQ: CNTY) has seen a significant increase in its stock price recently, with shares surging almost 36% in the past month. Analysts are optimistic about the company’s growth prospects, particularly in Missouri and Nevada.
Stifel analyst Jeffrey Stantial has reaffirmed a “buy” rating on the stock, setting a price target of $5, which represents a potential upside of 10.1% from the closing price on November 29th. He highlighted the strong performance of Century’s newly renovated property in Caruthersville, Missouri, as well as the improving revenue trends at the Nugget Casino Resort in Sparks, Nevada.
Century recently completed a $52 million conversion of its Caruthersville property from a boat to a land-based casino, which has exceeded management’s expectations in terms of visitor numbers and spending. The Missouri Gaming Commission’s approval of this conversion has paved the way for the property to open as a full-fledged gaming venue with a new hotel.
In Nevada, Century’s acquisition of the Nugget Sparks casino in 2022 initially faced challenges due to unfavorable weather conditions and competitive promotional activities. However, the company has implemented strategic changes, including management adjustments and enhanced gaming offerings, leading to improved performance and margins at the property.
Looking ahead, Century is focusing on developing its group and convention business at Nugget Sparks, a segment that was neglected by the previous owners. Analysts believe that these efforts could drive revenue growth and profitability in the coming quarters, with potential benefits materializing by late 2025 or early 2026.
Additionally, Century is exploring the sale of its non-core gaming assets in Poland following the country’s relicensing process. With stability in the regulatory environment, the company’s Casinos Poland unit has attracted interest from potential buyers. A successful sale could generate significant proceeds for Century, which could be used to reduce debt and streamline the company’s focus on its U.S. operations.
Overall, analysts are optimistic about Century Casinos’ growth prospects in key markets like Missouri and Nevada, as well as the potential for asset sales to strengthen the company’s financial position. Investors are encouraged by the company’s strategic initiatives and the positive outlook for its gaming properties.
