Shares of Full House company experience significant growth following analyst's prediction of potential doubling of share value.
Updated on: May 6, 2025, 05:20h.
The Gambling Gauntlet: Full House Resorts' Rollercoaster Stock Journey
Shares of Full House Resorts (NASDAQ: FLL) saw a surge in after-hours trading following an analyst's bullish stance on the ailing casino operator. David Bain, analyst at Texas Capital Securities, has given the regional casino titan a thumbs-up, rating it a "buy" with a $7 price target. This optimistic outlook comes amidst a tumultuous nine months for the stock, which has plummeted by 42% – a fall the analyst attributes, in part, to investor misconceptions surrounding capital requirements for their Illinois gaming venue, the American Place Casino.
FLL's projected EBITDA growth for the next two years outpaces that of its peers, suggesting that these recent stock market gyrations were unwarranted and provide an attractive opportunity for investors[1]. By Bain's estimation, the misunderstanding about the company's funding timeline for the American Place has fueled excessive stock price volatility[1].
The American Place: On Permanent Hold
Because the permanent financing for the Illinois gaming establishment won't be needed until the first half of 2026, Full House has alternative financing options in its arsenal[1]. In the unlikely event that the company needs more time, it could petition the Illinois Gaming Board (IGB) for an extension, allowing The Temporary at American Place to continue its operations[1]. Some investors fear that the operator might need up to $400 million for the permanent American Place. However, Bain takes a more optimistic view[1].
Colorado's Chamonix: A Sputtering Start, a Promising Future?
Investors have also been wary of Full House's Colorado gambling establishment, the Chamonix Casino Hotel. This concern arises from the casino's subpar performance since it opened in late 2023, prompting a wave of management shuffles[2]. Encouragingly, both the Colorado and Illinois casinos appear to be making progress[2].
At Chamonix, recent cost cuts and marketing efforts aiming to capitalize on the upcoming season seem to be taking effect[2]. Although it may take some time to see positive results, Colorado, with its rapidly expanding gaming market, has the potential to host one of the state's most luxurious and well-regarded casino resorts, giving Full House a strategic advantage[2].
A Fivefold Bet on Full House Resorts Stock
While $7 may seem like a lofty target, Bain has laid out a multi-year scenario in which the shares could soar over fivefold[1]. This means that patience could be rewarded, as the stock could potentially rebound significantly given time[1].
With a current price-to-earnings (P/E) ratio of 3 and an enterprise value (EV) to EBITDA ratio of 6, the stock appears undervalued, especially when compared to its historical trading valuations and exit multiples[1]. Furthermore, the successful relocation of Full House's Rising Star casino hotel (previously in Indiana) would further drive up the stock's worth[1]. However, Bain acknowledges that this turnaround won't happen overnight and requires patience from investors.
Caution in Casinos: A Last Roll of the Dice
With growth prospects and investor skepticism coming into play, it's essential for investors to weigh the risks before diving into Full House Resorts stock. Although it's no easy task to predict the future, these developments in management, operations, and market performance could set the stage for a potential rebound in Full House Resorts' fortunes.
[1] - Full House Resorts expected revenue growth, current and projected valuation multiples. (2025). Retrieved from
- The optimistic outlook on Full House Resorts (FLL) by analyst David Bain at Texas Capital Securities has given the regional casino operator a thumbs-up, with a $7 price target.
- Bain's estimation for the misunderstanding about the company's funding timeline for the American Place has fueled excessive stock price volatility.
- The anticipated EBITDA growth for Full House Resorts outpaces that of its peers, suggesting recent stock market gyrations were unwarranted and present an attractive opportunity for investors.
- Encouraging progress is being made at Full House's Colorado gambling establishment, the Chamonix Casino Hotel, following cost cuts and marketing efforts aimed at capitalizing on the upcoming season.
- Despite the bullish stance on Full House Resorts stock, investors should exercise caution due to growth prospects and potential risks involved in the industry.
- In the multi-year scenario laid out by analyst Bain, Full House Resorts' shares could soar over fivefold, making patience a necessary virtue for potential investors.
