Acquisition firms buy rating
Tuesday, Aug. 17, 1999 | 11:40 a.m.
THE ASSOCIATED PRESS
A prominent gaming analyst reaffirmed his buy rating on Harrah's today, one day after the company announced it planned to acquire Players International for about $425 million.
BancBoston Robertson Stephens senior gaming analyst Harry Curtis said that the acquisition would help Harrah's earnings by allowing it to expand into the Houston market, as well as additional markets in Kentucky, Illinois and Tennessee. Harrah's also will benefit by consolidating the Players and Harrah's casinos located in Maryland Heights, Mo., near St. Louis.
If the acquisition is successful, Curtis said he would raise his 2000 earnings per share estimate by 5 cents, to $1.85. He estimates the company would raise its cash flow to $861 million, up from a previous estimate of $773 million.
Curtis has set a price target of $32 for Harrah's, a 42 percent premium over its current value.
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