Caesars Entertainment (NASDAQ: CZR) was upgraded to Positive from Neutral by Susquehanna, which raised its price target to $31.00 from $25.00.

The firm said the upgrade reflected a favorable risk-reward setup, with earnings revisions likely to trend higher. Susquehanna pointed to Caesars' regional portfolio, which accounts for roughly 40% of its valuation, as a near-term positive as promotional reinvestment normalizes and potential consumer tailwinds emerge in March and April from tax refunds and easing inflation.

Las Vegas operations, representing about 45% of the company's value, were expected to improve sequentially from third-quarter 2025 trough levels due to seasonal factors such as a higher mix of group and convention business in the fourth quarter of 2025 and first quarter of 2026. The firm said broader consumer demand trends would become clearer by the second quarter of 2026.

Susquehanna also highlighted a more stable outlook for Caesars' online business, driven by iCasino operations. While acknowledging strategic gaps versus more premium competitors, the firm noted Caesars' position as one of the lowest-cost operators in the sector and its high financial leverage, with net leverage of 5.2x excluding capitalized rent. The analyst said even modest improvements in operating trends could drive a significant positive stock reaction.