1 Main Capital Optimistic About Caesars Stock

1 Main Capital is positive regarding the performance of Caesars Entertainment's stock.

Caesars Entertainment's stock fell by almost a quarter this year, but 1 Main Capital thinks the company will do well in the future. This is even though the general stock market, measured by the S&P 500 index, has gone up by over 7%.

Reasons for Optimism

• Interactive arm profitability: Caesars' online sports betting is doing well.
• Capital investments: More than $1 billion is being injected into growth projects.
• Free cash flow: Analysts expect Caesars' FCF to significantly impact share value.

1 Main Capital thinks Caesars is promising because its online division has started to make money.

Investments in Growth

Caesars has invested over $1 billion in different projects, expecting them to be profitable.

• $650 million into a new property in Danville, VA.
• $400 million upgrading Atlantic City casinos.
• $400 million into revamping New Orleans locations.

Yaron Naymark, the person who started 1 Main Capital, believes that the money they put into Caesars will be profitable, as they are looking to get a 15% profit from these investments.

Free Cash Flow Impact

People are optimistic about Caesars Entertainment because they expect it to generate a lot of cash in the future. Currently, for every $100 worth of Caesars stock, the company could potentially produce $12 in cash each year. Analyst Naymark believes this cash generation will increase. If the company makes $2 billion a year, which is equal to $9 for each share of the stock, he expects the price of the stock will go up quite a bit from where it is now.

Company Maneuvers

Tom Reeg, the boss of Caesars, hasn't said no to the idea of selling some of their less important casinos to get more cash. Doing this might make Caesars a better choice for investors by making the company run more efficiently and focus on the parts that make more money.

Caesars' plan is similar to 1 Main Capital's positive outlook. They believe that the potential for future success is more important than short-term problems, like how the results of the Super Bowl and March Madness affect their online business.

1 Main Capital's research shows that Caesars Entertainment's stock price is likely to go up because they are working harder on online markets and have made their physical business better.