11:08 AM EDT, 08/12/2024 (MT Newswires) -- Churchill Downs (CHDN) has a "unique double-digit organic growth profile" that sets it apart from its gaming peers and other consumer stocks, BofA Securities said Monday in a note.

The horse racing venue operator's "growth pipeline" includes its newly-opened Terre Haute casino, the upcoming The Rose Gaming Resort with historical racing machines, and a horse racing entertainment venue that is scheduled to open in 2025 in Owensboro, Kentucky.

"We are excited about the potential for the Rose in particular given the densities and low competition in Northern VA and beyond 2025 can see growth carry on from additional HRM's in Virginia and NH," BofA said.

The Churchill Downs' acquisition last year of Exacta Systems, which provides technology to support historical horse racing operations, has bolstered the company's EBITDA margins, according to the firm.

"We see CHDN's unique double-digit organic growth profile, upcoming Northern VA property (the Rose) opening and scarcity value as compelling relative to broader Gaming and Consumer stocks," it said.

BofA upgraded the stock to buy from neutral and raised its price target to $155 from $145.

Shares of Churchill Downs were up 2% in recent trading.

Price: 136.26, Change: +2.60, Percent Change: +1.95