Caesars is "significantly underpriced" and investors have overlooked multiple value creation catalysts including a recovery of conventions and international travelers to Las Vegas, the note said.
They put in place a buy rating with a price target of $191 a share, 87% higher that its trading price of $101.89 at Thursday's close.
The firm noted that Caesars' profits from its Las Vegas strip alone offer a potential 41% stock upside.
Shares of the Reno, Nev., company at last check rose 3.68% to $105.4.
"We believe Caesars is significantly underpriced. We view the land-based business alone as worth ~43% above the Wednesday, November 10, 2021, closing price." said B. Riley Analyst David Bain in a note to investors.
"Combined with our view of proper valuation of its digital and managed casino businesses, we calculate a full price target 91% above Wednesday’s closing price. Further, we believe investors have overlooked multiple additional probable value creation catalysts," wrote Bain.
Caesars operates the management of casinos and resorts under the Caesars, Harrah's, Horseshoe and Eldorado brands.
The investment firm listed the recovery of conventions and international travelers to Las Vegas and an incremental rise in profitability at Caesars' Pompano facility as bullish opportunities for the company.
It also cited new operating income from a development partnership with Cordish Companies, a potential Strip asset sale, and a potential Strip Linq Promenade sale, as value creators.
"Over the next two years, we expect Caesars to continue to benefit from land-based portfolio EBITDA growth, rapid de-leveraging from generated free cash flow and other cash creation events, and potentially acute market share increases in its digital business," the note added.
Caesars owns and manages close to 53 gaming properties in 16 states with approximately 56,000 slot machines and nearly 46.5 million hotel rooms.