Jefferies Lowers Price Target on Gaylord Entertainment (GET), But Still Allows for 46% Upside
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Price: $1.88 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Buy rating on shares of Gaylord Entertainment (NYSE: GET) and is lowering its price target by $3 to $40 following its Q2 results. The $40 price target allows for 46 percent upside.
The company released its Q2 results with revenue and adjusted EBITDA (CCF) of $236.8 million and $62.8 million vs the firms estimates of $244.9 million and $54.4 million and consensus of $238.4 million and $57.8 million.
Hotel RevPAR fell by 3 percent on a 50 bps loss in occupancy, flat ADR, and a 4.8 percent decrease in Other RevPAR.
GET is reiterating its CCF guidance for 2011 of $215-$300 million, but lowered its total RevPar growth to 4-6 percent which excludes Opryland.
The firm cut its 2011 and 2012 CCF estimates slightly from $222.7 million and $256 million to $222.5 million and $253.4 million. EPS for 2011 and 2012 were also lowered from $1.30 and $2.51 to $0.98 and $2.19.
An analyst at Jefferies comments, "We believe that the stock’s reaction to the results was driven by muddled communication regarding the company’s pricing and booking strategy during the downturn rather than a fundamental weakness in results or guidance. In fact, we believe the only truly surprising element of the results was the positive performance of the Opryland. Accordingly, we believe the sell-off offers a buying opportunity."
For more ratings news on Gaylord Entertainment click here and for the rating history of Gaylord Entertainment click here.
Shares of Gaylord Entertainment closed at $27.15 yesterday.
The company released its Q2 results with revenue and adjusted EBITDA (CCF) of $236.8 million and $62.8 million vs the firms estimates of $244.9 million and $54.4 million and consensus of $238.4 million and $57.8 million.
Hotel RevPAR fell by 3 percent on a 50 bps loss in occupancy, flat ADR, and a 4.8 percent decrease in Other RevPAR.
GET is reiterating its CCF guidance for 2011 of $215-$300 million, but lowered its total RevPar growth to 4-6 percent which excludes Opryland.
The firm cut its 2011 and 2012 CCF estimates slightly from $222.7 million and $256 million to $222.5 million and $253.4 million. EPS for 2011 and 2012 were also lowered from $1.30 and $2.51 to $0.98 and $2.19.
An analyst at Jefferies comments, "We believe that the stock’s reaction to the results was driven by muddled communication regarding the company’s pricing and booking strategy during the downturn rather than a fundamental weakness in results or guidance. In fact, we believe the only truly surprising element of the results was the positive performance of the Opryland. Accordingly, we believe the sell-off offers a buying opportunity."
For more ratings news on Gaylord Entertainment click here and for the rating history of Gaylord Entertainment click here.
Shares of Gaylord Entertainment closed at $27.15 yesterday.
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