SAN FRANCISCO, Aug. 24 /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 raised estimates on
Harrah's Entertainment, Inc. (NYSE: HET) and MGM Grand, Inc (NYSE: MGG), while
providing an update on recent developments in the gaming industry. Harrah's
Entertainment is the most diversified gaming company in the casino industry.
MGM Grand owns and operates the MGM Grand, its 5,005-room flagship property in
Las Vegas and New York-New York, a 2,000-room property also in Las Vegas.
"We believe that fourth-quarter room rate trends in Las Vegas are
accelerating in much the same way they did in first-quarter 1999," said
Curtis. "We have been impressed with the growth in visitor demand through the
seasonally soft summer months. This fall, however, strong tourist demand,
partially driven by the opening of Paris in September, will be supplemented by
strong-convention demand, which should give Las Vegas casinos, pricing-power.
"The California State Supreme Court today issued a decision overturning
Proposition 5, the initiative passed in November 1998, which would have
significantly expanded gaming at Indian casinos in California," said Curtis.
"We expect this issue to resurface on the November 2000 ballot. In the
meantime, the casino industry has a 15-month reprieve to orchestrate its
strategy.
"Due to the strong industry forecast, we are increasing our third-quarter
1999 earnings-per-share estimate for MGM Grand from $0.44 to $0.50, above
consensus of $0.47. Our fourth-quarter 1999 estimate increases to $0.53, in-
line with consensus," said Curtis. "In addition, we are increasing our 1999
earnings-per-share estimates from $1.87 to $1.97, above consensus of $1.90.
"We are increasing our 2000 earnings-per-share estimate for Harrah's
Entertainment from $1.80 to $1.85, well above consensus of $1.72," said
Curtis. "This increase reflects a $0.05 per share contribution from the
company's acquisition of Players International, which we expect to close
during fourth-quarter 1999."
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
Corporation (NYSE: BKB). Together, BancBoston Robertson Stephens, BancBoston
Robertson Stephens International, and Evergreen Securities Ltd. employ 1,000
employees throughout the world with offices in Boston, San Francisco, New
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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
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
BancBoston Robertson Stephens International Ltd. is regulated by the
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not meant for private customers. The securities discussed herein are not FDIC
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N.A., and are subject to investment risk, including possible loss of any
principal amount invested.
SOURCE BancBoston Robertson Stephens
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