Investing.com -- Jefferies updated its ratings on several gaming stocks amid growth prospects for 2025 and strategic developments across the sector.
The brokerage upgraded Boyd Gaming (NYSE:BYD) and Las Vegas Sands (NYSE:LVS) to "buy" on capital projects and balance sheet strength.
But Red Rock Resorts (NASDAQ:RRR) was downgraded to "hold" on its capital spending cadence through 2026.
Churchill Downs (NASDAQ:CHDN) remains Jefferies' top pick, supported by accelerating EBITDA growth and leverage improvement.
Jefferies noted that Las Vegas demand is expected to remain robust amid constrained supply, with Caesars (NASDAQ:CZR) Entertainment and MGM Resorts (NYSE:MGM) seen as undervalued despite operational challenges.
Macau's recovery continues but lags pre-COVID levels, with recent Chinese economic stimulus offering modest support. LVS is seen gaining market share due to new suites, while Wynn Resorts (NASDAQ:WYNN) faces slight declines.
In regional markets, competition and economic uncertainty are likely to keep growth uneven. PENN Entertainment and CZR are poised for capital growth, while PENN's strategic pivots could drive gains.
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