UPDATE: Bank of America Upgrades Pinnacle Entertainment on Deal Risks Being Removed
In a report published on Friday, Bank of America analyst Shaun C. Kelley upgraded Pinnacle Entertainment (NYSE: PNK) from Underperform to Buy and raised the price target on the company from $14 to $30.
In the report, Bank of America stated, "We are upgrading shares of PNK to Buy from U/P. Our big concern with PNK had been high peak leverage of over 6.7x and lack of cash flow until Lake Charles construction was complete. Divesting Lake Charles addresses both issues with lower overall leverage (now peak at 6.2x) and faster deleveraging. As such, PNK- ASCA's combination of synergies, free cash flow and deleveraging are too strong to ignore, even with anemic regional fundamentals."
Pinnacle Entertainment closed on Thursday at $19.70.
Latest Ratings for PNK
|Feb 2017||SunTrust Robinson Humphrey||Initiates Coverage On||Hold|
|Dec 2016||Deutsche Bank||Maintains||Hold|
|Aug 2016||Bank of America||Initiates Coverage on||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.