Wall Street analyst initiates coverage

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Wednesday, Feb. 26, 2003 | 9:45 a.m.

Blaylock & Partners L.P. has initiated coverage of Park Place Entertainment Corp. with a "hold" rating.

The rating reflects issues that could affect the stock for the next several quarters, including ongoing weakness in Las Vegas and the threat of higher taxes and increased competition in Atlantic City, where the company generates an estimated 35 percent of its total cash flow, Blaylock analyst Ray Neidl said.

This year should mark a transition period for Park Place, he said. The company is expected to generate significant cash flows this year and next when it reinvests and expands its properties, he said.