Full House Resorts (NASDAQ:FLL) gillyflower could live the next come to among regional gaming equities, and the shares offer up substantial upside potential, says an analyst.

In a promissory note to clients today, Philip Roth Washington psychoanalyst Edward V Engel restarts coverage of the Silver Slipper manipulator with a “buy” rating and a $16 cost target. That implies upside of 65.1 percent from the Nov. 26 close. The shares are upwards 1.75 percent inwards early trading on Engel’s call.

FLL is transitioning from a micro-cap gaming inventory to a national manipulator of scale,” said the analyst. “Similar to gaming stocks making this modulation in conclusion decade, we expect FLL’s valuation to expand as its earnings before interest, taxes, depreciation and amortisation (EBITDA) doubles, and potentially triples o'er the next terzetto to tetrad years.”

In add-on to Bronco Billy’s in Cripple Creek, Colo. and the Silver Slipper inwards Mississippi, Full House runs a partner off of gaming properties inwards Silver State and ane in Indiana. The accompany is also inwards the physical process of completing Charmonix Casino Hotel, which will follow set side by side(p) to Bronco Billy’s.

Colorado, Illinois ‘Transformational’

Roth’s Engel says the Charmonix project, which is a higher-end venue than Bronco Billy’s, is expected to unfastened inward early 2023. That, along with Full House’s pursuit of an integrated holiday resort inwards Waukegan, Ill., could live major catalysts for the shares downwards the road.

The analyst’s $16 toll target includes $4 a part attributable to the Centennial State expansion, and $3.50, assuming the manipulator wins the Waukegan license. He notes Charmonix could drive 20 percent-plus homecoming on investment, as the locus could enticement a higher-end clientele that indulges inward thirster overnight stays and spends more cash. Engel also notes the gain of a classier locus in Cripple Creek could advance tabularize spirited yields, bridging the crack with Black Hawk — Colorado’s other gaming town.

In Illinois, the Waukegan contrive could live “transformational” for Full House, says Engel.

“We trust this chance offers 15 percent-plus takings on investment, where the throw is remote of Chicago and inwards suburbs with depression gaming penetration,” notes the analyst. “Full House is disbursement $300 gazillion to $400 meg here, which we believe offers an Earnings Before Interest Taxes Depreciation and Amortization chance of $55 million.”

He says IL regulators should create a determination on the Waukegan victor inwards January. The psychoanalyst is assigning $2 a percentage to Full House’s cost due to Illinois, which implies 60 percent probability the manipulator is elect to run the Waukegan venue. Assuming that happens, the per-share value of that case grows to $3.50.

Bold Comparisons

Engel says Full House is the next regional gaming operator of scale, next inward the footsteps of the likes of Bally’s (NYSE:BALY), Golden Entertainment (NASDAQ:GDEN), and Eldorado Resorts, which is at present Caesars Entertainment (NASDAQ:CZR).

Those companies and others saw EBTIDA multiples two-base hit and three-bagger after EBITDA topped the $100 zillion mark.

“By achieving scale, we believe Full House testament get out this development oscillation as a higher calibre business, with a let down cost of capital letter and greater flexibleness to follow transformational developments and mergers and acquisitions opportunities,” concludes Engel.