Deutsche Bank has upgraded its rating on Crown Resorts to a buy from a hold.
Crowns shares dropped hard yesterday as news broke about 18 of its staff being arrested in China in an apparent crackdown on the marketing efforts of casino operators.
Deutsche Bank says the stock was trading at a 19% discount to its revised valuation of $13.75 a share. The shares are trading at $11.29 today, a rise of more than 1% after a 13.9% fall on Monday.
We believe that junket operators and players will be less inclined to travel to Australia while these investigations are ongoing, Deutsche Bank says in a note to clients.
However, Deutsche Bank believes some are overestimating the impact on Crowns revenue. It forecasts that Cr…
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