Golden Entertainment (NASDAQ: GDEN) stock could see significant growth if the casino operator proceeds with selling its real estate holdings, according to Deutsche Bank analyst Carlo Santarelli. The potential sale could drive the stock price to $40, up from its current $32 trading price.

Key Points:

• Deutsche Bank's price target is $36
• Gaming REITs show interest in Las Vegas assets
• Current company structure needs optimization due to limited portfolio growth and high corporate expenses
• The Strat is considered the portfolio's most valuable property

Recent Strategic Moves:

• 2023 sale of distributed gaming operations
• Implementation of share buybacks
• Introduction of quarterly dividend

Property Portfolio:

• 8 casino hotels total
• 3 in Las Vegas
• 3 in Pahrump, Nevada
• 2 in Laughlin
• Company currently owns all property real estate

Potential Outcomes:

• The Strat could attract significant interest from gaming REITs
• Colorado Belle in Laughlin might be considered for sale
• Company may discuss asset sales during upcoming Q4 results

Santarelli suggests that Golden Entertainment would consider a real estate sale alongside other strategic moves, noting that the company's smaller float and strategic alternative perceptions could make its capital-return story unique among peers. While gaming REITs express interest in Las Vegas assets, executing deals remains challenging in the current market environment.

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