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Analysts Raise Harrah's Earnings Estimates

24 July 2002

NEW YORK -- Several Wall Street analysts raised earnings estimates on Las Vegas Strip operator Harrah's Entertainment Inc. following the company's strong second-quarter results released last week.

"Harrah's strong organic growth, coupled with the recent pullback in the company's stock, make (the company) a compelling value," said David Anders, a gaming industry analyst with Merrill Lynch.

Anders raised 2002 estimates from $2.85 to $2.95 per share and 2003 estimates from $3.10 to $3.30 per share.

Robin Farley, an analyst with UBS Warburg, raised 2002 estimates from $2.90 to $3.01 and 2003 estimates from $3.06 to $3.18. The increase reflects higher projections for the company's improving Rio hotel-casino in Las Vegas as well as Atlantic City and northern Nevada properties, she said.

J. Cogan, who covers gaming for Banc of America Securities, raised 2002 estimates from $2.82 to $3 per share and 2003 estimates from $3 to $3.20 per share.

"Harrah's should continue to reap the benefits of homegrown technology, marketing expertise, capital investments, efficiency programs, increasing customer loyalty and growth balance sheet strength and flexibility," Cogan said.

Lehman Brothers analyst Joyce Minor also raised estimates, but lowered the company's 12-month price target from $60 to $55 given the recent weakness in the broader market.

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