Deutsche Bank Maintains Hold on Global Cash Access (GCA)

Deutsche Bank is out with its report today on Global Cash Access GCA, maintaining Hold and a $3 PT. In a note to clients, Deutsche Bank writes, "Maintain Hold/$3 PT after GCA preannounced 4Q10 and provided preliminary 2011 outlook, both of which missed our/Street's ests, as gaming weakness continues to be headwind for 3rd year in row, now to be exacerbated by Harrah's loss. We cut our FY11 EPS by 20%, but this mostly reflects lower non-cash add-back as our 2011 EBITDA ests go up by 5%. Our unchanged PT despite EPS cut also reflect removal of imp. overhang post MGM/Boyd renewal, but we worry abt economics and pricing pressure spreading to smaller/more profitable clients, acc. to checks." Shares of GCA closed yesterday at $3.81.