Isle of Capri Casinos "buy," target price raised

02/21/06 - Morgan Joseph & Co

NEW YORK, February 21 (newratings.com) - Analyst Adam Steinberg of Morgan Joseph reiterates his "buy" rating on Isle of Capri Casinos Inc (ISLE), while raising his estimates for the company. The target price has been raised from $31 to $34.

In a research note dated February 17 and published on February 18, the analyst mentions that the company has reported its F3Q06 EPS and net income significantly ahead of the estimates and the guidance. The results from Capri Casinos’ Mississippi and Louisiana operations were ahead of the estimates due to lower-than-expected competition, the analyst says. The EPS estimates for FY06 and FY07 have been raised from $0.31 to $0.51 and from $0.79 to $0.86, respectively, partly to reflect the resumption of construction at the Colorado properties.