Stock downgraded

Wednesday, Nov. 21, 2001 | 11:03 a.m.

Mandalay Resort Group was downgraded from "buy" to "market perform" this morning by Robertson Stephens gaming analyst Harry Curtis.

In a research note, Curtis said the downgrade reflects the fact that Mandalay now trades within 10 percent of his 12-month price target of $25. Curtis also cited Mandalay's history of "inconsistent operating results in Las Vegas (which) will make (stock price-to-earnings) multiple expansion from current levels difficult."

"Demand trends for the balance of (the fiscal year) are likely to be challenging for Mandalay," Curtis wrote. "Post-Comdex, which was down by as much as 40 percent this year, the outlook for the balance of the quarter (ending Jan. 31) is poor."

Curtis said investors should again look at buying Mandalay in the "mid to high teens."

Mandalay stock fell $1.84 to $20.70 this morning, a decline of more than 8 percent.

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