CHDN: A Thoroughbred in Waiting: Takeaways From Management Meetings

Research evidence excerpt

CHDN: A Thoroughbred in Waiting: Takeaways From Management Meetings

Equity Research

U.S. Gaming, Leisure & Lodging

25 June 2026

CHDN

A Thoroughbred in Waiting:

Takeaways From Management

CHDN OVERWEIGHTMeetings

U.S. Gaming, Leisure & POSITIVE

HRM trends strong, LT Derby growth intact (Derby week build- Lodging Price Target USD 132.00

out underappreciated, math herein), and the stock appears Price (24-Jun-26) USD 84.61

undervalued in light of continued mix-shift toward higher- Potential Upside/Downside +56.0% Source: Bloomberg, Barclays Research

multiple horse racing over time. Reaffirm OW.

We hosted Marcia Dall, Executive Vice President & Chief Financial Officer, and Samuel Ullrich, Brandt Montour, CFA

Vice President of Investor Relations, for a series of investor meetings in London. We came away +1 212 526 9947

incrementally positive on CHDN’s longer-term upside, as well as the path to getting there, via a brandt.montour@barclays.com

BCI, UScontinued refocusing of the business towards all-things-horse-racing. To summarize our

takeaways: Kristi Martiko, CFA

+1 212 526 7672

1.1. We expect a continued de-emphasis on regional gaming over time, which has bullish kristi.martiko@barclays.com

implications for CHDN’s SOTP/valuation longer term given that the rest of the business is BCI, US

essentially a higher growth, pure-play horseracing ecosystem with a substantial moat. Elizabeth Heffern

+1 212 526 35922.2. We think management‘s long-term aspirations for Derby growth are credible (largest

elizabeth.heffern@barclays.com

investor push-back currently), with a diverse set of drivers across sponsorship, hospitality, BCI, US

Derby-week expansion (worth up to $50m in incremental EBITDA alone, see sensitivity work

below), and aspirations to add other legs of the Triple Crown.