ISI Group Reiterates Sell Rating, $5 PT on Caesars Entertainment Corp.

In a report published Monday, ISI Group reiterated its Sell rating and $5.00 price target on Caesars Entertainment Corp. (NASDAQ: CZR).

ISI Group noted, “We believe that CZR's relative outperformance is unjustified, with our underperform thesis on the stock based largely on its outsized exposure to low growth and / or declining U.S. markets, and an over-levered balance sheet that will be extraordinarily difficult to grow out of. Regarding the three aforementioned drivers: First, Federal online poker legislation has little chance of passing any time soon; second, CZR is not a candidate for REIT conversion; and third, the company's balance sheet did not improve in conjunction with its recent debt offerings.”

Caesars Entertainment Corp. closed on Friday at $7.77.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.