\u201cManagement’s stringent requirements makes executing an acquisition tricky in the present M&A environment, though not impossible, while MCRI’s balance sheet flexibility could afford unique buying opportunities in a hypothetical downturn,\u201d wrote Stifel analyst Jeffrey Stantial in a note to clients.<\/p>\n
Stantial added that Monarch could be a takeover target, owing to \u201cquality assets and unclear long-term succession plans.\u201d He rates the stock a \u201cbuy\u201d with a $91 price target, implying upside of 30.5% from current levels.<\/p>\n
Assuming Monarch doesn\u2019t want to add a property in the markets in which it already operates, the field of prospective regions thins when considering the company probably isn\u2019t a contender for a Las Vegas Strip asset.<\/p>\n
Management is likely to continue to \u201ctarget an underinvested asset in a quality market (stable supply; reasonable tax rate; local economic growth drivers). These opportunities are more limited and barring macroeconomic headwinds evoking incremental opportunities,\u201d observed Stantial.<\/p>\n
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In terms of favorable tax trades and growing local economies, Northern Nevada and Colorado\u2019s three gaming markets of Black Hawk, Central City, and Cripple Creek fit the bill. Those areas also benefit from being in states with rising populations, a pivotal trait for regional casino operators.<\/p>\n<\/div>\n
Conversely, other large gaming states, such as Illinois and Louisiana, are shedding population. However, Louisiana has the benefit of neighboring Texas, which doesn\u2019t permit casino gaming.<\/p>\n","protected":false},"excerpt":{"rendered":"
Monarch Casino & Resort (NASDAQ: MCRI) is considering opportunities to add to its two-property portfolio via acquisition. Cochairman and CEO John Farahi commented to that effect in the company\u2019s second-quarter earnings press release, published on Wednesday after the close of U.S. markets. Reno-based Monarch currently owns the Atlantis in its home city and its eponymous […]<\/p>\n","protected":false},"author":46,"featured_media":210289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1],"tags":[81903,81966,81967],"acf":[],"yoast_head":"\n
Monarch Casino Searching For Acquisitions, Says CEO<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n