GLPI - Gaming and Leisure Properties bulls are circling the wagon after earnings dip

2023-07-31 08:13:31 ET

Gaming and Leisure Properties ( NASDAQ: GLPI ) was defended by analysts on Monday after a post-earnings share price decline of about 5%.

Jefferies kept a Buy rating on GLPI after the narrow revenue and EPS beats. "The company demonstrates durability in earnings with a modest raise in guidance to reflect the current operating environment," noted analyst David Katz. We expect more updates on the Oakland A's deal with BALY and the company's various other growth projects.

Looking ahead, Katz and team continue to believe in the merits of GLPI's business, which is seen delivering long-term stable rent generation and growth through strategic relationships and transaction activity. GLPI is noted to have a strong enough balance sheet to pull off some moves. Jefferies' price target on GLPI of $61 is based on blended FY23/24 multiples of 16.5X EBITDA, 16X AFFO, and 17X free cash flow.

Elsewhere, CBRE Equity Research also kept a bull rating on GLPI. "While regional casino M&A has been sporadic over the past 18 months, we believe growth M&A is a key pillar of the domestic casino industry and expect deal activity to pick up as the economic tightening cycle begins to wind down," updated analyst John DeCree. GLPI is seen having an opportunity for GLPI to put more accretive capital to work, further enhancing the growth profile.

During the earnings call ( transcript ), Gaming and Leisure Properties ( GLPI ) executives discussed some details about the Las Vegas stadium deal. In May, Bally's Corporation ( BALY ) and. Gaming & Leisure Properties ( GLPI ) announced a deal with the Oakland A's to bring the Major League Baseball team to Las Vegas, contingent on state lawmakers approving a nine-figure public financing package to assist with stadium construction. GLPI owns the 34-acre stadium site at Tropicana Boulevard and the Strip, and has committed to providing up to $175M toward some shared improvements with the development in exchange for a commensurate rent increase.

Seeking Alpha analyst Pacifica Yield has GLPI rated as a buy on the back of its 6% dividend yield from an attractive industry and a payout ratio that is noted to still be conducive to further dividend raises.

Shares of GLPI tracked 0.77% higher in premarket trading on Monday.

More on Gaming and Leisure Properties:

• Valuation metrics on Gaming and Leisure Properties
• Relative strength index and moving averages
• Dividend scorecard on Gaming and Leisure Properties
• Seeking Alpha's Quant Rating for Gaming and Leisure Properties

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