Century Casinos has a good future. The regional Colorado gaming company had sunk pretty low in March but has since surged. Analysts see more upside ahead for the stock. Pending now is a “transformative” acquisition. They prediction is that shares will more than double.
The company operates gaming venues in Missouri, West Virginia, as well as international properties in Canada, the UK, and Poland. Recently, a Canadian asset was sold.
Roth Capital analyst, David Bain, advocates a “buy” rating on Century with a 12-month $11 price target. A move to $11 would be well above the name’s pre-pandemic peak of $8.95. He believes the Century can turn its revenue mix to 80 percent US/20 percent Canada by 2020.
Why such good news? It is all about some underpriced assets and new acquisitions. It would lead to ninety million dollars in earnings – and before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR).
Bain believes the operator can purchase a rival without having to shell out equity. This is a preferable position for investors because since companies issue new stock, the current shareholders become diluted.
Century is said to have $163.62 million market capitalization in mid-October. Even if it doubles in value, it is still a small-cap stock. It could more than double and possibly a surge to $19 . Certainly, this is an ambitious forecast, but Wall Street shares Bain’s enthusiasm as seen in brief highs in public trading.
A shrewd deal for Century could boost the price and fulfill the prophecy. It may be a small gaming outfit, but it has great potential per investors. A “transformative” transaction could be in the works to pump up the entity’s size. If the right asset appears, the company will strike.
Meanwhile, everyone is coping with the pandemic and its hit on profits. Century in turn is looking to strengthen its financing by focusing on iGaming and sports betting.