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CIBC Raises Park Place Rating to 'Buy'12 April 2002NEW YORK -- CIBC World Markets raised its rating on Park Place Entertainment Corp. from "hold" to "buy," citing the company's "substantial free cash flow." CIBC gaming analyst William Schmitt set a 12-month price target of $14, a 20 percent premium over current levels. The company's cash flow -- which Schmitt estimates will reach $254 million in the first quarter -- can be used to "reduce leverage, repurchase shares or seek an opportunistic acquisition." Schmitt estimated the company will report earnings of 7 cents per share for the quarter ended March 31, which is 2 cents below the consensus estimate. Park Place will report its first quarter earnings April 22. "We believe our estimates are conservative, with considerable upside potential based on strong revenue generation in Atlantic City and the Midwest and the early stages of a rebound in Las Vegas, combined with cost reduction initiatives," Schmitt wrote. |