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Although Steven Kent of Goldman, Sachs & Co. slides back to third place after three years at No. 2, he retains a loyal base among buy-siders. “He puts out wonderful primers — ‘Essentials of Gaming’ and ‘Essentials of Lodging’ — that he updates annually,” explains one backer. “If you’re a generalist, or just someone who wants a refresher for the group, it’s easy to read 100 pages and become an instant expert.” Kent’s top picks include Starwood Hotels and Resorts Worldwide, on the belief that the Stamford, Connecticut–based concern has a “compelling valuation relative to its history and peers.” Starwood has “a strong capital allocation story that will include share buybacks and dividends,” he says. However, he is warning clients away from Penn National Gaming, a casino and racetrack operator headquartered in Wyomissing, Pennsylvania. “The regional gaming market is saturated, so any new supply and any incremental changes in demand result in much weaker operating results,” Kent reports. “Penn faces cannibalization as more casinos are opening up nationwide.” RUNNER(S)-UP Robin Farley UBS Carlo Santarelli Deutsche Bank Securities |