The move comes in the wake of the company delivering better-than-expected EPS in the June quarter. A week ago, the company disclosed its intention of buying back shares worth $50 million.
Analyst Shaun Kelley said in a research note, "Following the sale of its real estate to GLPI, we expect PNK to generate $135–$145 million of annual free cash flow for a 20 percent yield."
The brokerage indicated that its price objective was based on its 7x 2016 normalized EBITDAR. The analyst believes that this is approximately in line with its nearest rivals, Penn National Gaming, Inc PENN.
At time of writing, Pinnacle was up 4.28 percent at $12.30.
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