Nomura Securities Maintains a 'Neutral' on Gaylord Entertainment (GET); Did TRT Favor the Deal in the First Place?
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Price: $1.88 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Gaylord Entertainment (NYSE: GET) price target of $31.00.
Analyst, Harry C. Curtis, said, "TRT Holdings (controls 22% of GET) sent an open letter to shareholders urging them to vote against the proposed plan to partner with MAR and transition into a REIT. GET implied to the Street that all the major names were invited to bid for its management contracts. We have to assume that this is true. Given TRT’s track record of holding assets for long periods, we suspect that the time horizons of other investors, such as mutual funds and hedge funds, are substantially shorter than TRT’s. If the MAR/REIT plans falls through, we estimate there is 10%-20% downside risk in GET’s stock price over the near term and not many viable options to enhance shareholder value, short of TRT buying GET’s assets itself. At the end of the day, we believe there are limited options for GET, but that that MAR/REIT option enhances value over the near and long term, particularly as GET assets are tied into the Marriott (NYSE: MAR) rewards system."
For an analyst ratings summary and ratings history on Gaylord Entertainment click here. For more ratings news on Gaylord Entertainment click here.
Shares of Gaylord Entertainment closed at $37.78 yesterday.
Analyst, Harry C. Curtis, said, "TRT Holdings (controls 22% of GET) sent an open letter to shareholders urging them to vote against the proposed plan to partner with MAR and transition into a REIT. GET implied to the Street that all the major names were invited to bid for its management contracts. We have to assume that this is true. Given TRT’s track record of holding assets for long periods, we suspect that the time horizons of other investors, such as mutual funds and hedge funds, are substantially shorter than TRT’s. If the MAR/REIT plans falls through, we estimate there is 10%-20% downside risk in GET’s stock price over the near term and not many viable options to enhance shareholder value, short of TRT buying GET’s assets itself. At the end of the day, we believe there are limited options for GET, but that that MAR/REIT option enhances value over the near and long term, particularly as GET assets are tied into the Marriott (NYSE: MAR) rewards system."
For an analyst ratings summary and ratings history on Gaylord Entertainment click here. For more ratings news on Gaylord Entertainment click here.
Shares of Gaylord Entertainment closed at $37.78 yesterday.
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