Bank of America Corp. Upgrades Pinnacle Entertainment to Buy (PNK)
Pinnacle Entertainment (NYSE:PNK) was upgraded by investment analysts at Bank of America Corp. from an “underperform” rating to a “buy” rating in a note issued to investors on Friday, AnalystRatings.Net reports. The firm currently has a $30.00 price target on the stock, up from their previous price target of $14.00. Bank of America Corp.’s target price points to a potential upside of 52.28% from the stock’s previous close.
The analysts wrote, “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.”
Shares of Pinnacle Entertainment (NYSE: PNK) traded up 4.92% during mid-day trading on Friday, hitting $20.67. Pinnacle Entertainment has a one year low of $9.72 and a one year high of $21.50. The stock’s 50-day moving average is currently $19.61. The company’s market cap is $1.207 billion.
Pinnacle Entertainment (NYSE:PNK) last announced its earnings results on Thursday, July 25th. The company reported $0.21 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.23 by $0.02. The company had revenue of $315.30 million for the quarter, compared to the consensus estimate of $323.77 million. During the same quarter in the prior year, the company posted $0.29 earnings per share. The company’s quarterly revenue was up 5.7% on a year-over-year basis. On average, analysts predict that Pinnacle Entertainment will post $0.91 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on PNK. Analysts at Brean Capital raised their price target on shares of Pinnacle Entertainment from $22.00 to $29.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Separately, analysts at RBC Capital raised their price target on shares of Pinnacle Entertainment from $24.00 to $29.00 in a research note to investors on Friday, July 19th. They now have an “outperform” rating on the stock. Finally, analysts at RBC Capital upgraded shares of Pinnacle Entertainment from a “sector perform” rating to an “outperform” rating in a research note to investors on Thursday, June 27th. They now have a $24.00 price target on the stock, up previously from $18.00.
Two analysts have rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the company’s stock. Pinnacle Entertainment has an average rating of “Hold” and an average target price of $21.60.
Pinnacle Entertainment, Inc (NYSE: PNK) is an owner, operator and developer of casinos and related hospitality and entertainment facilities.
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