Station Casinos "buy," target price reduced

08/01/06 - Banc of America

NEW YORK, August 1 (newratings.com) - Analysts at Banc of America Securities maintain their "buy" rating on Station Casinos (STN), while reducing their estimates for the company. The target price has been reduced from $87 to $75.

In a research note published this morning, the analysts mention that the company has reported its 2Q results broadly in-line with expectations. Capex related to Red Rock has risen by more than 8% q/q and Station Casinos has reduced its EPS guidance, the analysts say. News flow regarding future capital projects, including Reno, Durango, Castaways, master-planned expansions and Native American gaming contracts, is expected to act as a catalyst to Station Casinos’ share price, Banc of America Securities adds. The EPS estimates for 2006, 2007 and 2008 have been reduced from $2.70 to $2.52, from $3.03 to $2.75 and from $4.45 to $3.88, respectively.