JP Morgan Reiterates Overweight Rating on Pinnacle Entertainment
JP Morgan is out with a research report this afternoon, where it reiterates its Overweight rating on Pinnacle Entertainment (NYSE: PNK).
The JP Morgan analysts cited the company's recent announcement that it will expand its River City Casino in south St. Louis County, which opened in March 2010. The expansion will add a 200-room hotel tower, a 10,000 sq. ft. event center, and a 1,700 space covered parking garage. Construction is expected to begin in 1Q12, with completion in 2H13.
Overall, the analsyts believe that PNK can achieve a favorable ROI on this incremental investment and do not see it as an overly aggressive investment.
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