Barclays Maintains an 'Overweight' on Pinnacle Entertainment (PNK); New Accounting Doesn't Change Thesis

Barclays maintains an 'Overweight' on Pinnacle Entertainment (NYSE: PNK) price target lowered $1 to $18.

Barclays analyst says, "A new accounting treatment of Pinnacle's mychoice program obscured a good set of quarterly results. Pinnacle's business plan continues to generate results. The company is still focusing on operational efficiencies while its key properties gain market share. In addition, Pinnacle's growth pipeline (Baton Rouge, Vietnam, Ohio) could generate upside. In short, our positive view on Pinnacle remains intact as we believe the company can still deliver strong revenue and EBITDA growth next year and beyond."

"Our 4Q11 EBITDA and EPS estimates go to $68.0 million and $0.11 from $60.0 million and $0.08. Our 2012 EBITDA and EPS estimates go to $287.6mn and $0.70 from $293.3 million and $0.66. Our lower EBITDA estimate reflects slightly lower property EBITDA margins to account for higher expenses, partially offset by higher revenue growth. Our 2013 EBITDA and EPS estimates are $316.2 million and $0.80."

For more ratings news on Pinnacle Entertainment click here and for the rating history of Pinnacle Entertainment click here.

Shares of Pinnacle Entertainment closed at $11.00 yesterday.

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