The analysts have confirmed that the shares of Monarch Casino & Resort have stayed strong despite the establishment’s executive departure that has happened relatively recently. On Tuesday, the casino stated that its COO David Farahi will leave the gaming company.
Farahi joined Monarch in 2012 and was crucial for the company’s expansion into Colorado. He also served four terms as President of the Colorado Gaming Association.
Although it may not be easy for Monarch Casino to replace Farahi, since he had a Wall Street-facing role, for now, the company’s shares remain stable.
Jefferies analyst David Katz stated:
“We believe the fundamental value, broad-based operating expertise, and earnings power of the assets remain considerable, as compared to other names in our coverage.”
Michelle Shriver, who’s joining Monarch as corporate vice president of operations, will step in to do some of Farahi’s work for the time being.
“During her tenure with Ameristar, Ms. Shriver also helped oversee the ~$300M expansion of Ameristar Black Hawk and has deep experience and relationships in the Black Hawk market,” says Stifel analyst Jeffrey Stantial.
Stantial believes that Monarch’s shares are a “buy”.
He added:
“Coupled with MCRI’s full real estate ownership, peer-low net leverage, and healthy operating markets, we see the opportunity for shares to re-rate higher as visibility into the ‘new normal’ improves. Hence, we reiterate Buy.”
