Golden Entertainment's potential real estate sale could significantly boost its stock value, according to Deutsche Bank analyst Carlo Santarelli. The gaming company's shares might reach $40 if it monetizes its property assets, up from its current trading price of around $32.

Key Points:

• Deutsche Bank's current price target is $36
• Gaming REITs show interest in Las Vegas assets, though deal execution remains challenging
• The company owns real estate for eight casino hotels across Nevada
• The Strat, located near the Las Vegas Strip, represents the portfolio's most valuable asset

Recent Strategic Moves:

• 2023 sale of distributed gaming operations
• Implementation of share buybacks
• Introduction of quarterly dividend

Santarelli suggests Golden Entertainment might consider additional strategic alternatives in 2025, citing:

• Limited portfolio growth
• Declining public float
• High corporate expenses relative to EBITDA

Property Portfolio:

• 3 properties in Las Vegas
• 3 venues in Pahrump
• 2 locations in Laughlin
• The currently shuttered Colorado Belle in Laughlin could be a potential sale target

The company may provide more details about potential asset sales during its upcoming fourth-quarter results announcement, though no date has been set. Any real estate transactions would likely generate significant interest from gaming REITs, particularly in The Strat property.

Related Articles

Previous Articles