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Analyst Upgrades Mandalay

17 May 2004

NEW YORK – As reported by The Street: "A month ago, Mandalay Resort Group (MBG:NYSE) seemed pricey, trading at 52-week highs, but after sliding nearly 20%, the company's shares may be cheap again.

"Credit Suisse First Boston analyst Scott Barry upgraded Mandalay to outperform from neutral on Monday morning, telling investors that the stock was oversold, citing strong fundamentals in the company's core Las Vegas operation.

"…'Mandalay has significant exposure to white-hot Las Vegas fundamentals, with 76% of fiscal 2005 earnings before interest, taxation, depreciation and amortization from the Las Vegas Strip, particularly room-rate pricing power,' said Barry in his upgrade.

"…According to CSFB research, Mandalay is well positioned with 18,500 rooms on the Strip, accounting for 28% of the hotel room inventory. And with Las Vegas results going strong, Barry raised his fiscal 2005 and 2006 earnings estimates on the company, telling investors that the stock's slide makes valuations seem compelling…"

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