UPDATE: Credit Suisse Upgrades Isle of Capri Casinos to Neutral, Raises PT
In a report published Monday, Credit Suisse Group upgraded its rating on Isle of Capri Casinos (NASDAQ: ISLE) from Underperform to Neutral and raised its price target from $5.00 to $5.50.
Credit Suisse noted, “ISLE shares have fallen 28.5% since October 1 versus 1.6%/1.8% declines in the S&P 500/Russell 2000. While we remain concerned about a challenging consumer environment, the impact of future competition (Lake Charles), and are cautious about returns the Nemacolin project (increased budget), we believe much of this is baked into the stock. While ISLE is still highly leveraged, on the positive side proceeds from the sale of its Biloxi property as well as other debt refinancing efforts in recent years have given the company more runway. ISLE has no meaningful debt maturities until 2017 and capacity under its credit facility gives it room to pursue strategic investments and potential acquisitions.”
Isle of Capri Casinos closed on Friday at $4.97.
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