BGB Securities Reiterates Buy Rating, $45 PT for Gaylord Entertainment

In a report published earlier today, BGB Securities Inc. reiterated its Buy rating and $45.00 price target for Gaylord Entertainment Company (NYSE: GET).BGB said in its report “GET has agreed to sell the Gaylord brand and the right to manage it to Marriott for $210 million in cash. GET will be reorganized as a REIT effective January 1, 2013. By the end of 2012, GET expects to issue a one-time taxable dividend of undistributed earnings and profits totaling $415-$450 million, with 80% paid in GET common stock and 20% paid in cash. Investors reacted enthusiastically to the news, a rational reaction, in our opinion, to the substantial additional value that is expected to be created through synergistic cost savings (estimated at $33 million-$40 million annually, net of management fees) and revenue enhancements from the Marriott partnership in addition to the tax advantages of a REIT structure.”Gaylord Entertainment Company closed yesterday at $37.95.