UPDATE: Bank of America Downgrades Caesars Entertainment to Underperform on Increasing Execution Challenges

Bank of America lowers its rating on Caesars Entertainment

from Neutral to Underperform and reduces its price objective from $16 to $10. Bank of America comments, "We are downgrading CZR from Neutral to Underperform as we think execution challenges are rising following 1) recent management departures, 2) slower 2Q growth in regional gaming markets, 3) declining valuations in the online/social space, and 4) a dilutive asset sale. Caesars' has substantial operating/ financial leverage ($23B in debt) and is extremely sensitive to small changes in valuation." CRZ closed at $11.32 on Thursday.