The recent Las Vegas Grand Prix, a highly anticipated event among Formula 1 fans, concluded in November. While the event drew visitors from around the world, it did not have the anticipated impact on Caesars Entertainment, as stated in a report by CDC Gaming Reports. Joseph Greff, an analyst for J.P. Morgan, noted the soft impact of the F1 event on the company.

Greff revised his price target for Caesars’ stock down by $1, reducing it from $55 to $54. He attributed this adjustment to the Formula 1 event having a “lower than previously expected performance.” The event had a positive impact on higher-end properties like Caesars Palace but did not significantly affect the company’s lower and middle-tier properties.

In addition, Greff addressed the underwhelming performance of Caesars’ three casinos in Atlantic City. He also pointed out that the ongoing redevelopment of Harrah’s New Orleans contributed to the downgrade.

Taking these factors into account, Greff adjusted his estimate for Caesars’ cash flow in 2023. The initial estimate of $3.8 billion was lowered to $3.4 billion. He also made a slight decrease in the 2024 cash flow projection, estimating it at $3.81 billion.

Another report by Benzinga revealed the 12-month price targets for Caesars by eight analysts. The targets ranged from a low estimate of $48.00 to a high estimate of $70.00, with an average target of $58.38. This average price target marked a 9% decrease compared to the prior average.

The reduced price target from J.P. Morgan’s analyst coincides with Caesars’ reported departure of several senior-level entertainment executives. Up to 10 executives, including Chris Yancey, Amy Naples, Jessica Tindor, Mike Hodin, and Paul Shlisky, were reportedly affected.

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