Deutsche Bank Resumes Caesars Entertainment at Hold, Slashes Target to $6 from $16
On, Nov 6th, Deutsche Bank comments that "Given our view of risks (debt levels, deferred spend, development execution, and competition), we see shares as fairly valued at present. Our Hold rating is unchanged." However, if the analyst can see the big lawsuit that CZR will come across, he may change his mind.
MGT Gaming, had filed a massive lawsuit against casino companies Caesars Entertainment, MGM Resorts, WMS Gaming, Penn National Gaming and Aruze Gaming America. MGT Gaming alleges that these companies infringed on its patent 7,892,088 related to networked slot machines with a shared-display bonusing event. When I recently visited a casino in Las Vegas, the group play slot machines were the most popular gaming devices on the floor, the same as CZR.
Right now, the allegedly infringing machines are only addressing 1.25% of the United States slot machine market which gives MGT tremendous upside potential. However, it would be a big loss for CZR, if MGT win the lawsuit, CZR need to pay the royalties to them, which will definitely shock the stock price of CZR.