Century Casinos (NASDAQ: CNTY) experienced a significant surge in its stock price, climbing nearly 12% on Monday after a robust third-quarter earnings report. This momentum carried into Tuesday, with shares hitting their highest levels since January. Analysts have outlined a path for the stock to continue its upward trajectory into next year.
A notable catalyst for this rally is Century Casinos’ Rocky Gap Casino in Maryland. Analysts remain bullish on Century’s shares, expressing optimism in a new report to clients. Stifel analyst Jeffrey Stantial has reiterated a “buy” rating on the regional casino operator’s stock while raising his price target to $5 from $4. This revised target suggests a potential upside of approximately 25% from current levels, following a 55.45% surge over the past month.
According to Stantial, multiple properties, including Nugget Casino, Rocky Gap, Mountaineer, and the Poland locations, have all contributed to the stock’s upward movement. However, he highlighted the sequential improvement at Nugget Casino in Sparks, Nevada, particularly noting the positive changes following recent property management adjustments, with the third-quarter exit rate approaching pre-acquisition productivity levels.
Century Casinos acquired the Nugget Casino in February 2022 and has faced challenges in the Reno-Lake Tahoe market, including a tough promotional environment and management issues at the property. These hurdles now seem to be behind them, suggesting the Nugget could significantly impact the operator’s fourth-quarter and 2025 results.
Century Casinos has faced some difficulties with its gaming stock for much of the year, leading Wall Street to view the company primarily as a 2025 story. However, the recent uptick in stock price provides potential validation of this perspective. The new land-based casino hotel in Caruthersville, Missouri, and the reopening of a casino in Poland are expected to help normalize earnings next year. Additionally, the stock remains attractively priced even after its recent rise.
Stantial added that although Century’s shares have outperformed recently, their valuation is still on the lower end compared to peers, making their fiscal year 2025 targets seem increasingly attainable. Besides their Colorado locations, Rocky Gap in Maryland, and the Nugget in Nevada, Century operates the Mountaineer Casino in West Virginia, two casinos in Missouri, and several properties in Canada.
There has been ongoing speculation about Century possibly selling its two-thirds stake in Casinos Poland, a discussion delayed by Russia’s 2022 invasion of Ukraine and the subsequent influx of Ukrainian refugees into Poland. These new residents have frequented Century’s gaming venues, boosting revenue.
During the third quarter, Century’s operations in Poland exceeded Stifel’s estimates, but this doesn’t mean management is unwilling to divest part of the business. On a conference call with analysts, Century executives indicated they remain open to selling what they described as non-core assets in Poland once the country’s relicensing cycle is complete.
 stock surged 12% post strong Q3 results, fueled by Rocky Gap Casino. Analysts bullish with a 25% upside target.){kind=link}