Century Casinos "buy," target price reduced - update

05/14/07 - Morgan Joseph & Co

NEW YORK, May 14 (newratings.com) - Analysts at Morgan Joseph maintain their "buy" rating on Century Casinos Inc (CNTY), while reducing their estimates for the company. The target price has been reduced from $12 to $11.

In a research note published on May 11, the analysts mention that the company has reported its 1Q EPS short of the estimates and the consensus. Although Century Casinos’ revenues and EBITDA increased significantly on a y/y basis, they were short of the estimates, the analysts say. The company’s results were affected by adverse weather conditions, issues at the Central City casino and substantial weakening of the Rand against the US dollar, Morgan Joseph adds. The EPS estimates for 2007 and 2008 have been reduced from $0.59 to $0.39 and from $0.63 to $0.52, respectively.