Posted on: October 27, 2025, 02:17h.
Last updated on: October 27, 2025, 02:29h.
- Analyst says real estate holdings offer “transformative upside”
- He says Golden Entertainment stock is inexpensive relative to peers
Golden Entertainment (NASDAQ: GDEN), despite a challenging year where its stock has lost nearly 30% of its value, is drawing new attention from investors. Analysts suggest that the company’s real estate holdings could unlock significant potential for appreciation, making it an enticing option compared to its peers.
Texas Capital analyst David Bain recently highlighted the stock’s attractiveness in a report that slightly adjusted his earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates for the third quarter and full year. Despite these revisions, he maintained a “buy” rating on the stock, projecting a price target of $39—suggesting a potential upside of about 77% from its current valuation.
“We believe GDEN’s Nevada-centric, Strip and Locals segmented portfolio captures greater long-term growth potential than geographically-dispersed regional peers,” Bain noted, emphasizing the company’s strong cash flow and low leverage.
Operating predominantly in Las Vegas, Laughlin, and Pahrump, Golden Entertainment is intricately linked to the vibrant Las Vegas locals’ market. Its more than 70 gaming taverns scattered across the Las Vegas Valley position it well for growth, reflecting the ongoing demand in the area.
Golden Entertainment Real Estate Could Propel Stock
Analyzing Golden’s property holdings reveals potential avenues for unlocking shareholder value. The company owns the real estate associated with its key asset, The Strat, in addition to approximately nine acres of undeveloped land located near the busy Las Vegas Strip.
This full ownership of valuable real estate draws attention from notable investors, including one who has recently adopted an activist stance regarding the company. Bain stressed the fact that the current market capitalization of approximately $576.53 million might not fully reflect the true value of these real estate assets. A sale involving The Strat and the neighboring nine acres could yield proceeds that far exceed the current market cap.
Bain points out that if Golden were to pursue a sale-leaseback arrangement with The Strat, they would face a long-term commitment in the form of lease payments, all while reaping immediate cash influx.
Golden Shareholder Rewards Support Case for Stock
In addition to property assets, Bain highlighted that GDEN’s stock is currently undervalued relative to its competitors, trading at an estimated 20% discount based on forecasted enterprise value/EBITDA for 2026. This discrepancy may indicate that the market has not fully integrated Golden’s property holdings and financial stability into its trading price.
Moreover, GDEN’s ~4% dividend yield, coupled with proactive share repurchase programs—eliminating 14% of its outstanding shares last year—illustrates a strategy that pays investors as they wait for improved earnings and potential share revaluation.