Casinos Churchill Downs, Bally's Corp fall after Wells Fargo downgrade

Bally's

05/01/2024 19:01

** Shares of casinos Bally's Corp  BALY.N  and Churchill
Downs  CHDN.O  fall 3.6% and 1%, respectively, after Wells Fargo
turns bearish on the firms
    ** Wells Fargo downgrades BALY to "underweight" from
"equal-weight", keeps PT unchanged at $10 
    ** Estimates BALY's remaining real estate at $1.05 bln, but
does not see its leverage (debt to adj. EBITDA ratio) falling
below ~6x in the foreseeable future, limiting BALY’s investor
appeal 
    ** Says long-term upside to BALY is a sale of its Chicago
permanent facility, but has less confidence in its financial
estimates after underwhelming performance in company's temporary
facility
    ** Brokerage also downgrades CHDN to "equal-weight" from
"overweight"; says co has idiosyncratic growth drivers in FY24,
but growth already reflected in stock's current valuation 
    ** CHDN stock rose 27.6% in 2023, while BALY fell 28%

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))