Investing.com -- Barclays initiated coverage of Churchill Downs (NASDAQ: CHDN ) Inc. with an “Overweight” rating and a $125 price target, calling it a compelling long-term growth story with defensive fundamentals and undervalued assets.

The brokerage said Churchill Downs stands out in the U.S. land-based gaming sector due to its deep growth pipeline, strong management, and full ownership of its real estate, including the iconic Kentucky Derby venue, which provides downside protection and pricing power.

While recent concerns over the D.C. economy and the timing of a new property opening in Dumfries have pressured sentiment, Barclays views these headwinds as temporary.

The firm also sees Churchill Downs as relatively resilient amid broader macro uncertainty, supported by its unique asset base and cash flow growth.

Barclays noted the stock is trading near trough valuation levels, calling current prices an attractive entry point for long-term investors.