Analyst raises Mandalay estimates

Gaming analyst Harry Curtis raised his estimates for Mandalay Resort Group earnings and reiterated his "buy" rating on the company's stock.

The action by the BancBoston Robertson Stephens analyst follows Mandalay's announcement last week of third-quarter operating earnings of 37 cents a share, "well about our 34-cent estimate and analysts' consensus estimate of 31 cents a share," Curtis said.

"The quarters results were excellent, driven by strong results in Las Vegas, as well as in Elgin, Ill.," he said. "This supports our outlook that business trends are robust in the fiscal fourth quarter, ending Jan. 31, and will continue to accelerate into next year.

"We are confident that revenue per available room will continue to increase next year, driven by ongoing strength in visitor demand and an increase in convention activity."

Curtis boosted his fiscal 2000 per-share earnings estimate to $1.37 from $1.32 and his fiscal 2001 prediction to $1.70 from $1.65. "Our price target of $32 represents a multiple of eight times estimated calendar 2000 cash flow of $612 million, which could be conservative," he said.

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