Accel Entertainment Stock Price Target Raised to $16 Amid Strong Performance and Promising Initial Results from Fairmount Casino Expansion.

Analyst Greg Gibas at Northland has raised Accel Entertainment's (ACEL) price target from $15 to $16, maintaining an Outperform rating. The company's strong performance in Illinois, early success in Louisiana, and promising results at Fairmount Park Casino have led to revised Q2 estimates. The average target price is $15.67, with a high estimate of $16 and a low of $15. The average brokerage recommendation is 2.0, indicating an Outperform status.

Analyst Greg Gibas at Northland has increased the price target for Accel Entertainment (ACEL) from $15 to $16, while maintaining an Outperform rating. This adjustment reflects the company's robust performance in Illinois, notable early achievements in its recent expansion into Louisiana, and promising initial results following the phase I opening of its casino at Fairmount Park. These factors have led the firm to revise its Q2 estimates upwards.

Based on the one-year price targets offered by three analysts, the average target price for Accel Entertainment Inc (ACEL) is $15.67, with a high estimate of $16.00 and a low estimate of $15.00. The average target implies an upside of 30.12% from the current price of $12.04. The average brokerage recommendation is 2.0, indicating an Outperform status.

Accel Entertainment Inc (ACEL) reported record quarterly revenue of $344 million, the highest since going public, with a 7% year-over-year growth in both revenue and adjusted EBITDA. The company completed the integration of its recently acquired operations in Louisiana, adding 96 locations and 614 terminals, which is expected to drive future revenue growth. The opening of Fairmount Park Casino, the first racino in Illinois, is anticipated to be a significant growth driver for Accel Entertainment Inc (ACEL). The company continues to expand its national footprint, operating in 10 states and four time zones, which provides diversification and flexibility. The company maintains a strong balance sheet with $422 million of liquidity, allowing for continued investment in growth and shareholder returns through share repurchases.

However, Accel Entertainment Inc (ACEL) faces challenges. Nevada experienced a small revenue decline in the first quarter due to the loss of a key customer following an ownership change. The departure of CFO Matt Ellis could lead to potential instability during the transition period, although Mark Phelan will step in as acting CFO. There were startup costs associated with the Fairmount Park Casino, impacting financials before revenue generation began. The company faces challenges in optimizing and remodeling operations in Louisiana, a mature market with legacy equipment. Steel price increases due to tariffs could impact future construction costs, particularly for Phase 2 of the Fairmount project.

References:
[1] https://www.gurufocus.com/news/2984622/accel-entertainment-acel-target-price-raised-amid-strong-performance-acel-stock-news