Eldorado Stock Soars Higher on Bull Note

Eldorado Resorts is reopening five Nevada Casinos today

Deputy Editor
Jun 4, 2020 at 2:44 PM
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The shares of casino stock Eldorado Resorts Inc (NASDAQ:ERI) are up 8% at $41.98, after receiving a price-target hike from Deutsche Bank to $57 from $28. The firm said though that many investors believe the sector could be in for a rough patch, due to social distancing and the long-term economic effects of coronavirus, it sees "new margin peaks ahead" for ERI. Also of note, today five Eldorado resorts in Nevada are reopening their doors. 

Steadily climbing on the charts since March's five-year low of $6.02, ERI is eyeing a close above the 120-day moving average for the first time since late February. Although the shares have been in recovery mode, the stock still sports a 29.2% year-to-date deficit. 

ERI June 4

Analysts are leaning bullish on Eldorado stock, with six out of nine in coverage sporting a "buy" or better rating. Meanwhile, the 12-month consensus price target of $38.95 is a 9.2% discount to current levels. 

It's also worth noting that ERI's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 91 (out of 100), showing that the stock has tended to exceed options traders' volatility expectations in the past year. 

 

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