FLL - Attractive risk-reward profile called out on Full House Resorts
Full House Resorts ([[FLL]] +4.0%) lands a price target boost from Craig-Hallum after the company's Q4 preliminary numbers impressed.The firm assigns a new PT of $8.00 vs. $6.00 prior and keeps a Buy rating in place.Analyst Ryan Sigdahl: "This relative outperformance combined with a valuation disconnect (comps at 10x vs FLL at 7x EV/EBITDA) and several potential catalysts create an attractive risk/reward. The company also announced plans to expand its casino in Cripple Creek by adding a 300-room hotel, parking garage, conference center, dining and updates to its casino which is expected to cost ~$180M. While this adds leverage and risk, we think the return potential is high (we estimate $30M+ incremental annual EBITDA) and transforms the market from a day trip to overnight destination."Full House guided for net income as high as $4M for the quarter.
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Attractive risk-reward profile called out on Full House Resorts