innacle Entertainment’s stock fell 22 cents, or 3 %, to us$ 7.16 in morning trading as the broader market extended its decline Wednesday after President Barack Obama released details of his us$ 75 billion mortgage relief plan. At midday, Pinnacle shares were down 3 cents at us$ 7.35.
Nicholas A. Danna IV of Sterne Agee said in a client note that the January results for the Las Vegas-based casino operator supports his view that Louisiana will be one of 2009’s best performing markets.
However, Goldman Sachs analyst Steven Kent downgraded Pinnacle to "Neutral" from "Buy" earlier this month on potential softness in the Louisiana market. The analyst said Louisiana may be weighed down by declining energy prices.
Danna, who attended the Louisiana Gaming Control Board meeting on Tuesday, also said the board’s approval of a 90-day extension of two licenses for Sugarcane Bay and Baton Rouge that have yet to be used shows the potential for more extensions in the future. "The importance of the extension is that it preserves the value of these two licenses for Pinnacle," he wrote. Danna maintained a "Buy" rating and us$ 10 price target.