Citi is Neutral on Caesars (CZR) Due to Concerns Over Aggressive Promotions Replacing High-Margin Strategy

Caesars Entertainment Inc. (NASDAQ:CZR) is one of the most promising stocks with huge upside potential. On November 21, Citi initiated coverage of Caesars with a Neutral rating and $23 price target. This sentiment surrounding the Neutral rating was announced as the firm believes that investors are concerned that Caesars Entertainment is replacing its high-margin strategy with more aggressive promotions.

In its Q3 2025 earnings report, which was released earlier, Caesars Entertainment disclosed achieving consolidated net revenues of $2.87 billion, which was both a modest decline of 0.17% year-over-year and also $25.34 million below guidance.

Citi is Neutral on Caesars (CZR) Due to Concerns Over Aggressive Promotions Replacing High-Margin Strategy

The company’s Regional Segment saw a net revenue growth of 6% year-over-year, driven by strong returns in Danville and New Orleans, and same-store growth from strategic reinvestment in the Caesars Rewards customer database. The Digital Segment reported net revenue of $311 million due to strong core volume growth in both sports and iCasino, with iCasino net revenue growing 29% due to increased volume and average monthly active users.

Caesars Entertainment Inc. (NASDAQ:CZR) operates as a gaming and hospitality company. The company owns, leases, brands, or manages domestic properties in 18 states with slot machines, video lottery terminals, and e-tables, and hotel rooms, as well as table games, including poker.

While we acknowledge the potential of CZR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CZR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.