Bally's (BALY) Stock Forecast & Price Target

Bally's Corp's financial performance in the third quarter demonstrated a robust growth trajectory, with overall revenues increasing by 12% year-over-year, bolstered by a strong 15% revenue growth in the Casinos and Resorts segment attributed to the acquisition of the Queen properties. The North America Interactive division also recorded impressive results, with revenues rising by 22% year-over-year and a positive EBITDA of $2.5 million for the first time, signifying successful integration and growth from digital operations. Additionally, the International Interactive segment showed resilience, achieving a 2% year-over-year growth in EBITDA, highlighting Bally's effective market positioning despite rising competition.

Bally's Corp has displayed troubling financial metrics, as International Interactive revenues have declined by 7% year-over-year, with a deeper adjusted decline of 10%, primarily due to the divestiture of its Asia interactive business. Additionally, the North America Interactive segment experienced negative adjusted earnings, reflecting persistent operational challenges including bridgework at TR Lincoln, a loss of VIP hosts at Bally's Atlantic City, and a slower-than-anticipated ramp-up at its temporary Chicago location. These factors, combined with concerns over high net leverage and limited trading liquidity leading to potential volatility, contribute to a negative outlook on the stock, further exacerbated by overvaluation relative to its peers.