BancBoston Robertson Stephens Reiterates Buy Rating on AZR
SAN FRANCISCO, July 22, 1999 -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior gaming and lodging analyst Harry Curtis today reiterated his Buy rating on Aztar Corp. (NYSE: AZR). Aztar, headquartered in Phoenix, Ariz., is a gaming company with casino/hotels in Atlantic City, New Jersey; Las Vegas and Laughlin, Nev., and riverboats in Evansville, Ind., and Caruthersville, Mo.
"We are reiterating our Buy rating on Aztar following the company's announcement of strong-second-quarter 1999 earnings," said Curtis. "The company reported earnings-per-share of $0.13, well above our $0.08 estimate and consensus of $0.09."
"We are increasing our 1999 and 2000 earnings-per-share estimates to $0.42 and $0.75 from $0.35 and $0.50, respectively," said Curtis. "Our revised estimate reflects significantly lower-interest-cost due to refinancing, reduced-debt levels and a reduction in the share count."
"Shares of Aztar currently trade at 5.1 times estimated 2000 EBITDA of $150 million and 12 times our revised earnings-per-share estimate of $0.75," said Curtis. "We believe a multiple of 6.5 times EBITDA is reasonable, which generates a 12-month target price of $13, more than 40 percent above current levels." |
