Barclays Maintains an 'Overweight' on Pinnacle Entertainment (PNK); Ho Tram Transaction Could Reduce Vietnam Risk

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Barclays maintains an 'Overweight' on Pinnacle Entertainment (NYSE: PNK) price target of $19.00.

Analyst, Felicia R. Hendrix, said, "Harbinger/AAC transaction may reduce PNK's funding risk associated with Ho Tram, but many questions remain. After the close of the deal, Pinnacle's partner in Vietnam will be a public company with access to equity and debt markets and cash from its original IPO. However, there remain questions about the funding gap, specifically what is it and does this transaction resolve that issue."

Hendrix said PNK may contribute to funding Ho Tram, but the amount is unclear (some think $60M or less, others $100M or more). Also PNK will own 26% Harbinger Global Corp (which will trade on NASDAQ). After a visit, Hendrix said work is progressing and sees potential upside to PNK of $3-$5/share from the first phase.

For an analyst ratings summary and ratings history on Pinnacle Entertainment click here. For more ratings news on Pinnacle Entertainment click here.

Shares of Pinnacle Entertainment closed at $9.19 yesterday, with a 52 week range of $8.06-$15.42.

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