Century Casinos (NASDAQ: CNTY) stock surge by 22.12 percent this week. This rally comes at the same time the company has reported that its second-quarter earnings have surpassed its revenue estimates prompting analysts to project that there will be more upsides on the share.
The Colorado-based CNTY reported adjusted earnings before interest, taxes, depreciation, and amortization of $25.2 million in the June quarter. The earning exceeded the consensus estimate by 36 percent.
Century’s impressive score happened, although its casinos in Poland and Canada remained closed for most of the quarter. Its Poland venue opened in late May, while Canada’s casino closed on 10th June. The result indicated the company’s strength in US operations.
Stifel analyst Jeffrey Stantial on Friday noted that the CNTY’s assets outperformed expectations in the second quarter. Stantial rates Century a buy with a $19 price target. That implies a 38.7 percent upside from its 6th August close.
Century employed sustainability moves to cut costs during the pandemic leading to a significant margin expansion. Stifel believes that companies should operate in a learner fashion as businesses normalize.
“Management’s commentary on sustainable operating trends was encouraging. As they believe most changes made to the operating cost structure should prove permanent with adjusted EBITDA remaining well above pre-COVID levels, even as operations normalize.”