Jim Cramer’s Thoughts on These 13 Stocks

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8. Churchill Downs Incorporated (NASDAQ:CHDN)

Number of Hedge Fund Holders: 41

Highlighting the company’s increased debt, multiple missed earnings, and stock decline, a caller inquired about Churchill Downs Incorporated (NASDAQ:CHDN), and Cramer replied,“Oh, you know what, that’s kind of, hey, it’s a one-trick pony. I’m not a fan, but I am a fan of yours.”

Churchill Downs (NASDAQ:CHDN) operates various entertainment venues, including live and historical racing tracks, online wagering services, and regional casinos. The company provides horse racing, pari-mutuel wagering, sports betting, and casino gaming, along with a range of related services like food, beverages, and hotel accommodations. On April 25, Stifel analyst Jeffrey Stantial lowered the price target on CHDN to $130 from $142 while maintaining a Buy rating on the stock.

The company reported an in-line Q1, but despite the results being “uneventful,” shares saw a notable decline. It was largely due to concerns over the Kentucky Derby’s weaker-than-expected guidance and comments, which raised fears about diminishing pricing power for Churchill Downs’ (NASDAQ:CHDN) top asset. While the firm acknowledged the negative optics surrounding a miss in Derby-adjusted EBITDA guidance, it believes the market is misinterpreting management’s comments. The analyst views the weaker ticket sales as a more specific issue and sees the decline as a potential buying opportunity.

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