Stock price when the opinion was issued
They run casinos in BC and ON. A strong consumer market should continue to support it. It has a 27% ROE and trades at 16 times earnings. There is some belief on the street that they over paid for the casino rights in the GTA, but he argues that this is already factored into the current valuation metrics. Another knock is that they are not paying a dividend. Yield 0% (Analysts’ price target is $47.25)
Casinos are good businesses. They have had recent tailwinds, such as new contracts in Ontario. He thinks this is a good stock to own. It generates a lot of cash and probably has more upside. However, it is not cheap. He would hold onto anything he owned, but would not buy at this price.