Broker snap: Rank is a 'compelling investment proposition', says Panmure

18th Jul 2011 12:49

Panmure Gordon has reinstated its buy recommendation on bingo hall and casino operator Rank Group, saying that Rank remains "a compelling investment proposition".The group announced on Monday that Guoco's offer closed on Friday with 74.5% acceptances (including Guoco's own shareholding) for its 150p-a-share offer. Rank is therefore retain its listing in London, with the 75% threshold narrowly avoided."Whatever the whys and wherefores of the last few weeks, in our view, the fact remains that Rank is a compelling investment proposition with a number of undervalued regulated gambling assets," said analysts Simon French and Lindsey Kerrigan."We reduce our price target from 204p to 184p to reflect a discount for the reduced free float (c25% from c60%) and weakened corporate governance, with Ian Burke now combined Chairman and CEO," they said.BC