Wachovia Downgrades Gaylord Entertainment (GET) to Market Perform

April 3, 2009 8:05 AM EDT

Wachovia downgrades Gaylord Entertainment (NYSE: GET) from Outperform to Market Perform.

Wachovia analyst says, "Since March 10 the stock has gained 91% versus 23% for the S&P 500, 22% for the Dow and 21% for the RMZ. We believe the agreement with its activist shareholders served as a catalyst to lift the shares from a level of 6.8x 2010E CCF to its current level of 7.8x CCF and 8.4x EBITDA, or 23% below peers. Short interest as a percentage of float is now 21.6% as of mid-March, from 24% in mid-February...The In an uncertain environment, we believe Gaylord is in a unique position to outperform its peers due to the contractual nature of its business. The hotels typically enter any given year with 60% occupancy on the books (52% in 2009) and business is booked 2-3 years in advance. We believe the share price is likely range-bound in the near term following an amendment to its rights plan."

To see more analyst ratings on GET Click Here.

Gaylord Entertainment Company (Gaylord) is a hospitality and entertainment company operating, through its subsidiaries.

Related Categories

Downgrades

Stocks Mentioned

Related Entities

• Wachovia

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?