Century Casinos (CNTY) Stock Forecast & Price Target

Century Casinos Inc. has demonstrated strong operational growth, with EBITDAR at its Cape Girardeau location increasing by 11% year-over-year, attributed to higher hotel and food & beverage revenues. The successful ramp-up of new facilities, including a recent hotel addition, has expanded the company's encatchment area significantly, resulting in an 82% revenue increase from patrons outside the immediate region. With forecasts indicating improved free cash flow (FCF) in 2025 and continued growth potential from recently acquired properties, Century Casinos is positioned for a positive financial trajectory moving forward.

Century Casinos Inc faces significant challenges that indicate a negative outlook for its stock. Key financial metrics reveal that the company's EBITDAR fell short of expectations, decreasing by 4% quarter-over-quarter and 17% year-over-year, largely attributed to underperformance at the Nugget Casino and Rocky Gap, alongside headwinds affecting the high-end consumer segment. Additionally, the recent decline in revenue, exacerbated by seasonality and competition from legalized iGaming, poses risks to future growth, with the company expected to experience only modest improvements in cash flow and leverage metrics by 2026.