Bally’s Corporation unexpectedly pulled the plug on its fourth-quarter earnings call with just 15 minutes’ notice, raising eyebrows on Wall Street. But that didn’t stop analysts from weighing in. Some saw potential in the company’s long-term projects, while others pointed to immediate financial challenges and concerns over debt.
Analysts React to Bally’s Last-Minute Cancellation
Truist Securities analyst Barry Jonas noted the abrupt cancellation in a report to clients on March 6, describing the earnings release as offering “more limited disclosures than normal.” The unexpected move left his earnings model for Bally’s “under review” until further details emerge in next week’s Securities and Exchange Commission filing.
Despite the uncertainty, Jonas found some bright spots. Bally’s recent acquisition of The Queen Casino & Entertainment in February and the 2026 opening of its planned Chicago casino provided long-term growth opportunities. However, he wasn’t ready to change his cautious stance, keeping a Hold rating on the stock due to “challenging near-term trends, limited float, and sizable debt burden with unclear visibility for meaningful deleverage.”
Jefferies Equity Research analyst David Katz echoed similar concerns. In his investor note, he remained cautious on Bally’s “elevated leverage and forthcoming capital needs.” Like Jonas, he maintained a Hold rating, signaling that while there’s potential upside, financial risks remain a sticking point.
Management Clarifies Public vs. Private Status
One key takeaway from Katz’s discussions with Bally’s leadership was a clarification on the company’s ownership structure. Management revealed that Bally’s would continue operating as a public company, under the control of its largest shareholder, Soo Kim. This came as a surprise to Katz, who had initially expected that the company might be taken private.
For investors wondering about Bally’s long-term trajectory, this confirmation keeps the stock’s public trading status intact, but also means the company will continue navigating the scrutiny of public markets rather than retreating into private ownership.
Digital Losses Widen, But a Recovery Could Be Coming
Bally’s digital division struggled more than analysts expected. The company reported $12 million in digital losses for the quarter—higher than Jonas’ forecasted $8 million. North American interactive losses also widened from the $10 million reported in Q4 of 2023.
However, there’s hope for a rebound. Jonas pointed out that these losses were largely due to Bally’s transition to a new unified platform. He believes this negative trend “should reverse itself in Q1,” suggesting that the company’s digital performance might stabilize as it adapts to the new system.
Katz also highlighted two digital developments: BallyBet’s launch in Tennessee and the rollout of the Monopoly Casino app in New Jersey. These moves could help bolster Bally’s online gaming footprint in key markets.
Bally’s Eyes Australian Casino Assets
Another area of interest is Bally’s potential expansion into Australia. Jonas noted that the company is exploring opportunities to acquire discounted assets from Star Entertainment, an Australian gaming operator facing financial struggles.
If Bally’s moves forward with these acquisitions, it could mark a strategic expansion outside of its core U.S. market. However, with the company already carrying significant debt, investors may question whether now is the right time for international dealmaking.
Stock Ratings Hold Steady Despite Uncertainty
Despite the mixed signals, neither analyst adjusted their price targets. Jonas maintained a price target of $18.25 per share, while Katz was slightly more conservative, sticking with $17 per share.
With Bally’s skipping its earnings call and limiting disclosures, the road ahead remains uncertain. Analysts are now looking to the SEC filing for more clarity on the company’s financial health and strategic direction. Until then, Bally’s stock remains in a holding pattern—literally and figuratively.
