Wednesday, FBR Capital Markets upgraded Gaylord Entertainment Co. (GET) shares to Market Perform from Underperform and increased its price target to $17 from $11. The brokerage lowered its 2009 EPS estimate to $0.11 from $0.19, while raising its 2010 per share estimate to profit $0.04 from loss $0.25.
Analyst Patrick Scholes attributed the upgrade based on attractive valuation, despite long-term supply concerns. Although the analyst's long-term concerns about above-industry supply growth in GET's top markets have not changed, following the nearly 40% drop in the share price over the past seven weeks, with the S&P 500 down about 2%, signs of life in group bookings and a very attractive valuation versus that of peers mean that he can no longer justify his Underperform rating on the stock.
However, the analyst still has long-term supply concerns with GET. Unlike most other lodging names, the analyst believes that over the next several years, GET will potentially face higher-than-industry supply competition.
As group demand begins to pick up in 2011-2012, the analyst believes three markets will potentially see strong supply growth: Nashville, Washington, D.C., and Dallas. The analyst believes that these supply headwinds could lead to relative underperformance of earnings growth in 2012-2014 and make GET less poised versus peers to participate in the anticipated recovery.
Currently, GET is up $1.12 or 6.99% and trading at $17.15.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.