BancBoston Robertson Stephens Reiterates Buy Rating on HET
SAN FRANCISCO, July 22 /PRNewswire/ -- 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 Harrah's Entertainment, Inc. (NYSE: HET). Harrah's Entertainment is the most diversified gaming company in the casino industry.
"We are reiterating our Buy rating on Harrah's Entertainment," said Curtis. "The company reported operating earnings-per-share of $0.37, in-line with our estimate and above consensus of $0.36. We estimate earnings-per-share from operations were closer to $0.39, excluding non-recurring items."
"We are increasing our 1999 earnings-per-share estimate to $1.50 from $1.44, reflecting increased EBITDA, above consensus of $1.45," said Curtis. "More importantly, we are increasing our 2000 earnings-per-share estimate to $1.80 from $1.60, well above consensus of $1.64."
"In our opinion, shares of Harrah's represent one of the best values in the large-cap casino industry," said Curtis. "The company's shares trade at only 5.7 times our revised 2000 EBITDA estimate of $770 million, and 6.4 times our 1999 EBITDA estimate. We expect multiple expansion to at least 7.5 times EBITDA, as investor confidence in 2000 estimates increases, which produces a 12-month price target of $31 per share."
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