| Over a month ago | ||||
As previously reported,… As previously reported, Jefferies analyst David Katz downgraded Monarch Casino to Hold from Buy with a price target of $90, up from $85, following the company's Q1 report, citing the recent outperformance with the stock up 26% year-to-date. While the company has what he calls "the strongest balance sheet within our gaming coverage," he sees the current valuation as fair given the macro set-up and his view that further growth or catalysts are "less defined" in the near-term, Katz tells investors. | ||||
Stifel analyst Steven… Stifel analyst Steven Wieczynski downgraded Monarch Casino to Hold from Buy with an unchanged price target of $96. Shares have meaningfully outperformed in the last year and while Q1 trends were healthy, he sees growing risk in light of inflation, gas prices, and other macro pressures that the regional gaming consumer begins to fade, Wieczynski tells investors. Though he remains constructive on the long-term outlook for Monarch, he sees an increasingly balanced risk-reward in the near-term, the analyst added. | ||||
Jefferies analyst David… Jefferies analyst David Katz downgraded Monarch Casino to Hold from Buy with a price target of $90, up from $85. | ||||
Truist analyst Barry… Truist analyst Barry Jonas raised the firm's price target on Monarch Casino to $100 from $88 and keeps a Buy rating on the shares as part of a broader research note previewing Q1 earnings in Gaming. Fundamentals in the quarter remained solid as Omicron fears subsided on strong pent-up demand, but stocks in this group still largely underperformed due to macro-related fears across consumer discretionary around inflation and the impact from war in Ukraine, the analyst tells investors in a research note. Jonas adds that he remains positive on the resiliency of the gaming industry, with bias for physical and profitable gambling stocks. | ||||
Stifel analyst Steven… Stifel analyst Steven Wieczynski raised the firm's price target on Monarch Casino to $96 from $91 and keeps a Buy rating on the shares. The analyst sees Monarch Casino as well-positioned to outperform Street estimates for Q1, and forecasts a +9% Adjusted EBITDA beat. He expects Monarch Casino's Atlantis property proved more resilient than contemplated through February, with initial March data suggesting an improving regional gaming consumer post-omicron. His checks also suggest Monarch Black Hawk continues to build on initial momentum, with management only recently beginning to fully market to local VIP play. Wieczynski sees further sequential upside through 2022, likely discounted in current consensus, driven by ramping VIP penetration in Black Hawk, group/convention recovery in Reno, and the eventual return of the 55+ demographic. | ||||
| Over a quarter ago | ||||
Reports Q4 revenue… Reports Q4 revenue $111.07M, consensus $98.35M. John Farahi, co-chairman and CEO of Monarch, commented: "Our fourth quarter results capped a year of significant operational and financial accomplishments for Monarch. In 2021, we successfully transformed our Monarch Black Hawk into a full-scale casino resort spa. On May 1, 2021, we immediately took advantage of the elimination of betting limits in Black Hawk and expanded our game mix. At Atlantis in Reno, we completed the redesign and upgrade of our high-end suites on the top two floors of the concierge hotel tower. We believe that all these factors contributed to record fourth quarter and full year financial results. We are honored to have received the prestigious distinction by Forbes, ranking Monarch 39th on the list of America's Best Small Companies." | ||||
Jefferies analyst David… Jefferies analyst David Katz lowered the firm's price target on Monarch Casino to $82 from $83 and keeps a Buy rating on the shares as part of his earnings preview for the casino gaming group. He is taking a more conservative stance on Q4 and Q1, while also updating his digital value assumptions and reflecting other events in his targets, such as the concession progress in Macau, Katz tells investors. | ||||
Reports Q3 revenue… Reports Q3 revenue $111.6M, consensus $101.19M. John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: "Monarch again delivered record financial results as our third quarter benefited from the strong ongoing pandemic recovery, economic and population growth in Denver and Reno, and the notable impact of the removal of betting limits in Colorado. Our focus on operational excellence and market-leading amenities has enabled us to leverage these tailwinds and drive consistent growth. Labor shortages and wage pressure, as well as supply chain constraints and price inflation, remain headwinds. Atlantis operation in Reno was impacted by unhealthy air quality from the California fires and Nevada's decision to reinstate indoor mask mandates. "Net revenue and Adjusted EBITDA in the third quarter of 2021 were $111.6M and $40.3M, respectively, reaching all-time highs for the second consecutive quarter, as each of our properties generated record net revenue and Adjusted EBITDA. For the second quarter in a row, we also achieved a record Adjusted EBITDA margin of 36.1%. | ||||
Monarch Casino announced… Monarch Casino announced that Chief Operating Officer David Farahi plans to leave the company, effective September 3, 2021, to pursue business interests outside the gaming and hospitality industry. Monarch also announced that Michelle Shriver has joined the company as Corporate Vice President of Operations. In this role, she will have primary responsibility for the operation of the newly expanded Monarch Casino Resort Spa Black Hawk and will reside in Denver, Colorado. Michelle has been a consultant to the Company since April 2021. | ||||
Reports Q2 revenue… Reports Q2 revenue $97.72M, consensus $81.8M. John Farahi, co-chairman and CEO of Monarch, commented: "Our second quarter financial results highlight continued market share gains in both Black Hawk and Reno. The two markets are experiencing rapid population growth and healthy economic fundamentals that are propelling demand for our market leading properties. We also believe that the pent-up demand is impacting the revenue growth, along with the federal government's recurring stimulus. Labor market constraints continue to be our major challenge at both properties." | ||||
