Wachovia Upgrades Gaylord Entertainment (GET) to Outperform; Deal On Directors & Amended Rights Plan Could Lift Shares Higher

March 10, 2009 8:37 AM EDT

Wachovia upgrades Gaylord Entertainment (NYSE: GET) to Outperform, saying the agreement with its activist shareholders could serve as a catalyst to lift the shares from their depressed level.

Wachovia analyst says, "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 activists shareholders could aid in the realization of private market value in the intermediate term...Raising rating to Outperform as we believe the agreement with its activist shareholders could serve as a catalyst to lift the shares from their depressed level of ~6.8x 2010E EBITDA to 7.0-7.5x or 40% above current prices yet still a 30% discount to peers. Approximately 24% of the float is held short as of mid-Feb."

To see more analyst ratings on GET Click Here.

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

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