SAN FRANCISCO, Aug. 17 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior gaming and lodging analyst
Harry Curtis, a 1999 Wall Street Journal All-Star Analyst, today reiterated
his Buy rating on Harrah's Entertainment, Inc. (NYSE: HET). Harrah's
Entertainment is the most diversified gaming company in the casino industry.
"We are reiterating our Buy rating on Harrah's Entertainment," said
Curtis. "The company announced that it has offered to acquire
Players International for cash and assumption of debt in a transaction valuing
the company at approximately $400 million.
"We believe Harrah's would benefit from this acquisition by:
1. consolidating the Players and Harrah's operations in Maryland Heights,
2. gaining access into the Houston market with the Players Lake Charles,
La., riverboat and
3. gaining access into additional markets in Kentucky, Illinois and
Tennessee with the Players Metropolis, Ill., riverboat casino,"
said Curtis.
"If the acquisition is successful, our 2000 earnings-per-share estimate of
$1.80 would increase by $0.05, remaining well above consensus estimate of
$1.69," said Curtis.
"In addition to the combined cost savings from operations, we estimate
that Harrah's will generate $861 million in EBITDA during 2000, versus our
prior estimate of $773 million," said Curtis. "Our $32 price target is based
on a 7.5 times 2000 EBITDA multiple and long-term debt ending of $2.3 billion.
We strongly reiterate our Buy rating on shares of Harrah's Entertainment based
on the 42 percent upside potential."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is the leading full-service investment bank
focused exclusively on growth companies. For the first half of 1999, the firm
completed over 100 offerings, raising more than $15 billion in capital for
clients and is the leading investment bank for Internet M&A transactions. The
firm's 45 research analysts cover nearly 700 companies. Founded in 1978,
BancBoston Robertson Stephens is the section 20 subsidiary of BankBoston
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The following synopsis is qualified in its entirety by the more detailed
information contained in the full research report, including the discussion of
certain risks associated with an investment in this security contained in
"Investment Risks."
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
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Factors that might cause such a difference include, but are not limited to,
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described herein and may occasionally possess material, nonpublic information
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SOURCE BancBoston Robertson Stephens
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