Mr Viral
The Rose Casino Hotel in Dumfries, Virginia, owned by Churchill Downs has been up and running for two months now, although it has not opened to the general public yet.
Regardless, a recent report by Stifel analyst Jeffrey Stantial suggests that Churchill Downs is a “buy” rating with its stock price target set at $164 in the analysis.
Stantial is basing this assessment on the newest location’s trajectory, which has been drawing players from Manassas, Woodbridge, and Fredericksburg and which is only expected to pick up from here on in. The Rose Casino Hotel is also seeing footfall from Washington, DC and has been contending for market share with MGM’s National Harbor.
Properties in both Kentucky and Virginia are hailed by the analyst as potential drivers of growth. Stantial is particularly optimistic about the Rose venue, as he believes that it can top Churchill Downs revenue derived from historical racing machines across the state, and even pins the potential revenue value of the venue – placing the gross gaming revenue at anything between $15 million and $20 million.
Churchill Downs is not leaving things to chance either, as Stantial has also observed a directed marketing campaign seeking to promote the property and drive more players to it, tapping into various media, such as socials, radio, online ads, billboards, TV, and more.
Competition No Reason to Fear for Rose’s Performance
The analyst is aware that there are more properties coming in and that competition is intensifying, but in Stantial’s view, the Rose property has specific geographical advantages that help it stand out and be more resilient to new players joining the market.
The only worthwhile competitor is MGM’s National Harbor, but the property is only limited to Washington, DC for the most part, meaning that the Rose ought to be able to outperform it.
GIPHY App Key not set. Please check settings