UPDATE: Deutsche Bank Upgrades Pinnacle Entertainment to Buy on Favorable Catalysts Ahead

In a report published Friday, Deutsche Bank analyst Carlo Santarelli upgraded the rating on Pinnacle Entertainment

from Hold to Buy, and raised the price target from $15.00 to $23.00. In the report, Santarelli noted, “Given what we believe are a series of favorable catalysts on the horizon, limited appreciation for the cash flow profile of the pro forma entity and its potential impact on equity value, increasingly bearish sentiment towards regional gaming in general, and an undemanding valuation in the face of potential multiple expansion scenarios, we are upgrading PNK to Buy from Hold and raising our price target to $23 from $15. At this stage, given the move in PENN shares and while we continue to find PENN very compelling, we believe PNK offers the best risk-reward of the regional operators over the next 6-9 months.” Pinnacle Entertainment closed on Thursday at $16.38.