Key insights
- Susquehanna raised its price target on Churchill Downs (CHDN) to $118 from $115, maintaining a Positive rating. The firm cited higher expectations for regional asset sales, the potential of the Thoroughbred Championship Series, and strong Kentucky Derby demand indicators. The asset sale is seen as a strategic pivot towards sports and live event economics. Churchill Downs' third-quarter results showed revenue slightly below and EBITDA slightly above consensus estimates.
Investing.com - Susquehanna raised its price target on Churchill Downs Inc. (NASDAQ:CHDN) shares to $118 from $115 while maintaining a Positive rating on the stock.
The firm’s action followed Churchill Downs’ third-quarter results, which showed revenue of $696 million and EBITDA of $264 million. The results came in 0.5% below and 0.8% above consensus estimates, respectively. The stock has surged nearly 9% over the past week, trading at $91.16 with a market cap of $6.35 billion. According to InvestingPro analysis, Churchill Downs appears undervalued at current levels, joining other opportunities on the Most Undervalued stocks list.
Susquehanna cited higher expectations for regional asset sales by year-end and increasing awareness of the potential Thoroughbred Championship Series to revitalize U.S. horse racing. The firm also pointed to healthy Kentucky Derby demand indicators.
Advance ticket sales for the Kentucky Derby represent approximately 60% of total estimated revenue, up roughly 25% year-over-year compared to sales at the same point last year. The new Visa sponsorship marks an early win for the Derby as it upgrades its sponsor roster.
The regional asset sale represents a major turning point for Churchill Downs in its business transition from gaming-led operations to a heavier mix of sports and live event economics, according to Susquehanna. InvestingPro subscribers gain access to exclusive insights including the company’s comprehensive Pro Research Report and over 10 additional ProTips for CHDN, providing deeper analysis of this strategic pivot.
In other recent news, Churchill Downs Incorporated reported record third-quarter 2026 earnings, with earnings per share reaching $1.23, surpassing Wall Street’s estimate of $1.19. However, the company’s revenue of $696 million slightly missed the forecasted $699.11 million. Despite this, investor enthusiasm remained strong as the company achieved record Adjusted EBITDA of $264 million and highlighted robust free cash flow. Additionally, Churchill Downs plans to expand its racing and gaming platforms. In related developments, Stifel adjusted its price target for Churchill Downs shares, lowering it to $131 from $132, while maintaining a Buy rating. The firm noted that Churchill Downs had a mixed quarter but confirmed that the regional sale process is on track to close by year-end at favorable valuations. These developments reflect ongoing strategic moves by the company amid market fluctuations.
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