Deutsche Bank Maintains Buy on Isle of Capri after Hotel and Casino Sale Agreement

Deutsche Bank has published a research report on Isle of Capri Casinos

after the company announced this morning that it has entered into an agreement to sell the Isle Biloxi Hotel and Casino. In the report, Deutsche Bank writes, "This morning, ISLE announced that it has entered into a definitive agreement to sell the Isle Biloxi Hotel and Casino to Golden Nugget Biloxi, Inc, a subsidiary of Landry's. No timing around the closing of the transaction was included in the release. While our estimates are unchanged at this time, the sale reflects a multiple of 8.7x our forward year property level EBITDA estimate and ~8.8x the property's trailing 12 month results. The multiple compares to our sum of the parts property level price target multiple of 6.0x our F2013 estimate and current trading multiple of 6.5x of F2013 forecast." Deutsche Bank maintains its Buy rating and $8 price target on Isle of Capri, which closed Friday at $6.37.