Bally's (BALY) Stock Forecast & Price Target

Bally's Corporation has demonstrated a positive financial trajectory, with third-quarter revenues increasing by 12% year-over-year, excluding proceeds from the divested Asia business, indicating strong performance particularly in the UK and North America Interactive segments. The company has seen robust growth in its North America Interactive revenues, rising 13% year-over-year, fueled by gains in iGaming, online sports betting, and contributions from the acquisition of a new property. Additionally, Bally's has reported an impressive EBITDA margin expansion of 370 basis points to 45.7% in its International Interactive division, reflecting effective management strategies despite heightened competition and regulatory challenges.

Bally's Corporation's International Interactive revenues experienced a year-over-year decline of 7%, indicating underlying challenges, although results slightly exceeded models and consensus estimates due to adjustments related to the sale of Asian operations. Additionally, the company's EBITDAR fell to $107.9 million, which was below both internal and consensus projections, highlighting operational weaknesses and inefficiencies, despite management's expectations for cost reductions in the upcoming quarters. Moreover, Bally's faces high net leverage and limited trading liquidity, contributing to concerns about potential volatility and an overvalued stock position compared to its industry peers.