VICI Properties acquires seven casinos as Scotiabank cuts target to $30
Scotiabank cut VICI Properties’ rating to Sector Perform and its price target from $36 to $30; Cantor Fitzgerald trimmed its target to $33 from $35. In Q4, VICI agreed to acquire seven casino properties, including the STRAT Hotel and four local Las Vegas sites, entering the Las Vegas Locals market.
1. Analyst Downgrades and Price Target Cuts
Scotiabank analysts downgraded VICI Properties from Outperform to Sector Perform and lowered its price target from $36 to $30, reflecting caution on valuation. Cantor Fitzgerald also cut its target to $33 from $35 but maintained an Overweight rating, citing sector upside potential in 2026.
2. Q4 Casino Acquisitions and Market Entry
In the fourth quarter, VICI agreed to acquire seven casino properties, notably the STRAT Hotel on the North Las Vegas Strip plus four additional Las Vegas sites. This transaction marks VICI’s entry into the Las Vegas Locals market, the second-largest U.S. gaming segment.
3. Sector Dynamics and Dividend Appeal
Despite recent downgrades, VICI’s strong balance sheet and a well-covered dividend near 4% underpin its appeal. Favorable supply-demand fundamentals and a rising M&A trend in gaming real estate could support further valuation improvements.