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. 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.