GDEN - Golden Entertainment called a value play in the casino sector

Union Gaming sees plenty of upside for Golden Entertainment (GDEN) even after the double-digit rally following a strong Q4 earnings report. Analyst John DeCree: "With much of the gaming sector climbing to new highs on margin expansion, sports betting, and iGaming, GDEN is a standout value play. Prior to the print, shares were trading with roughly a 20%+ FCF yield -- a bargain given the vastly improved risk profile of the company. GDEN is one of a few companies in our coverage universe that did not need any external capital during the covid crisis -- a major validation of the management team, business profile, and balance sheet that is still underappreciated by the market." DeCree says a 12% free cash flow yield is considered a more than acceptable return given the risk profile of the business. Union Gaming increases its price target to $40 vs. the average Wall Street PT

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Golden Entertainment called a value play in the casino sector