While Churchill Downs has no Las Vegas Strip exposure and there are lingering concerns about the state of the US horse racing industry, the stock is a gaming favorite on Wall Street.
Beynon anointed the stock one of his top ideas for the a cond half, calling it a standout among regional gaming companies due to a robust pipeline and a projected three-year compound annual growth rate of 20%-plus. That’s the highest in the analyst’s coverage universe, excluding Macau casino equities.
In addition to the ongoing ramping of assets that came online last year, other drivers of the Churchill Downs investment thesis include enhancements at its eponymous, storied Kentucky racetrack as well as historical horse racing machine (HRM) and regional casino expansion across multiple states.
“This well-diversified growth includes 1) Turn 1 experience; 2) DCG expansion/hotel; 3) LA HRMs in OTBs; and 4) DCG Downtown Louisville, in addition to ramping assets from 2022. In 2024, we expect $190m+ of additional project return EBITDA from 1) the Paddock project; 2) Queen of Terre Haute, 3) P2E growth (Dumfries, Rosie’s Emporia, other HRMs); and 4) Chaser’s (NH), as well as $35m from the Exacta Systems deal,” observed Beynon.
Beynon anointed the stock one of his top ideas for the a cond half, calling it a standout among regional gaming companies due to a robust pipeline and a projected three-year compound annual growth rate of 20%-plus. That’s the highest in the analyst’s coverage universe, excluding Macau casino equities.
In addition to the ongoing ramping of assets that came online last year, other drivers of the Churchill Downs investment thesis include enhancements at its eponymous, storied Kentucky racetrack as well as historical horse racing machine (HRM) and regional casino expansion across multiple states.
“This well-diversified growth includes 1) Turn 1 experience; 2) DCG expansion/hotel; 3) LA HRMs in OTBs; and 4) DCG Downtown Louisville, in addition to ramping assets from 2022. In 2024, we expect $190m+ of additional project return EBITDA from 1) the Paddock project; 2) Queen of Terre Haute, 3) P2E growth (Dumfries, Rosie’s Emporia, other HRMs); and 4) Chaser’s (NH), as well as $35m from the Exacta Systems deal,” observed Beynon.
