Wells Fargo Starts Isle of Capri Casinos (ISLE) at Market Perform; Diversified Earnings, But Pressure From New Competition

Wells Fargo initiates coverage on Isle of Capri Casinos (NASDAQ: ISLE) with a Market Perform. PT range $4-$5.

Wells analyst says, "ISLE has a diverse portfolio of 15 properties across the U.S. and a new property opening at Cape Girardeau in 2012. However, we are cautious on total U.S. regional gaming revenue growth and the impact of competitor openings. Our FY2012/FY2013 net EBITDA estimates of $190.8MM and $206.8MM, respectively, are roughly in line with the consensus. With ISLE trading at 5.5x and 5.8x our FY2013 and FY2014 net EBITDA estimates, excluding construction in progress, we view the stock's current valuation as fair. We expect ISLE's shares to trade in line with the
market until the impact of new competitor supply emerges in 2012."

For an analyst ratings summary and ratings history on Isle of Capri Casinos click here. For more ratings news on Isle of Capri Casinos click here.

Shares of Isle of Capri Casinos closed at $4.46 yesterday.

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