Monarch Casino plunges as Stifel, Jefferies cut rating on valuation
21/04/2022 18:19
** Shares of casino operator MCRI.O plunges 20% to $74.12;
third biggest pct loser on Nasdaq
** Stock hovering around 150-DMA price of $73.09; more than
500,000 shares traded vs 25-DMA volume of 83,135
** Both Stifel and Jefferies lower rating to "hold" from
"buy" on valuation worries; MCRI reported Q1 earnings above
estimates on Wed
** Jefferies says MCRI has strongest balance sheet within
its gaming coverage, but further growth or catalysts are less
defined near term
** Stifel sees growing risk regional gaming consumer begins
to fade due to inflation, gas process, re-allocation of budgets
and other macro pressures
** Stock is up ~18% YTD through Wed close vs decline of 2.4%
YTD for S&P 600 Hotels Restaurants & Leisure index .SPSMCHRL
(Reporting by Ankur Banerjee)