With shares in the online gambling operator PartyGaming up 146 percent since September 2008, one analyst argued Wednesday the time isn't ripe yet to take profits.
James Hollins of Daniel Stewart & Company in London attributed the company's meteoric rise to a number of issues, including a well-received road show and the prospect of positive legislative developments in the United States.
Mr. Hollins said that Mitchell A. Garber's as yet confirmed appointment to Harrah's Entertainment Inc. has driven rumor of a tie-up between PartyGaming and the casino giant.
He also said rumor of the United States Justice Department's interest in cracking down on PokerStars and Full Tilt -- and the resultant gains in poker player liquidity for Party -- is driving the price up.
Mr. Hollins said Daniel Stewart will remain long-term Holders of the stock given the firm expects industry consolidation to kick off in the second half of this year, and given Party's chances at securing some form of licensure in the United States.
In Wednesday trading, PartyGaming rose above 280 pence, implying a price-to-earnings ratio in the 2009 fiscal year of approximately 16 times.