Analyst encouraged by positive start to 2011
5 January 2011
LAS VEGAS, Nevada -- January is the time everyone weighs in with prognostications for the upcoming year.
Wall Street is no different.
MorganJoseph gaming analyst Justin Sebastiano said he was encouraged by what he heard from his casino industry contacts about the recent New Year's Eve celebration.
"Despite the treacherous winter weather that buried parts of the country in December, New Year's Eve was likely strong enough for U.S. gaming, as a whole, to turn in a small year-over-year revenue gain in the month," Sebastiano told investors.
As such, he believes the fourth quarter of 2010 could mark the second straight quarter of year-over-year gaming revenue gains.
"This is certainly a move in the right direction and makes us feel more confident about the direction of U.S. gaming revenue," Sebastiano said. "However, we are still hesitant to call a recovery just yet."
As for investment opportunities, Sebastiano recommended Pinnacle Entertainment, Full House Resorts, and Penn National Gaming.
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