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SunTrust to hold 20% interest in Entertainment City resorts
ByAinvest
Sunday, Aug 31, 2025 8:41 pm ET1min read
SunTrust to hold 20% interest in Entertainment City resorts
SunTrust Bank has announced it will hold a 20% interest in the Entertainment City resorts, a significant development in the gaming and hospitality sector. The announcement comes amidst a period of robust growth for the gaming industry, driven by increasing demand for entertainment and leisure activities.Entertainment City, a leading provider of gaming and hospitality services, has seen a surge in institutional investment. The company's strong financial performance and strategic initiatives have caught the attention of analysts, who now believe that the stock is undervalued. SunTrust's investment reflects a bullish outlook on the company's prospects and growth potential.
The Al Marjan resort project, a key component of Entertainment City's portfolio, is expected to benefit from a more favorable view on its potential. UBS Group, a leading financial services firm, has upgraded Entertainment City from a "hold" rating to a "buy" rating, raising the target price to $147. This upgrade reflects a positive outlook on the company's prospects and growth potential, particularly driven by the Al Marjan resort project in Ras Al Khaimah, United Arab Emirates [1].
The Al Marjan resort project is anticipated to bring significant returns. UBS has raised its run-rate adjusted property EBITDAM estimate for Al Marjan to $730 million, a 16% increase from Entertainment City's base-case guidance of $625 million. UBS values the project at roughly $34 per share, well above the $7-$12 currently implied by the market [2].
Despite recent market volatility, SunTrust remains optimistic about Entertainment City's ability to navigate challenges and capitalize on growth opportunities. The firm's sum-of-the-parts analysis indicates that the company's fundamental performance is likely to overshadow near-term transaction-related issues.
Investors should continue to monitor Entertainment City's progress as it integrates new assets and navigates the evolving gaming landscape. SunTrust's investment and UBS's updated price target and buy rating suggest that the market remains bullish on the company's ability to manage its growth and deliver shareholder value.
References:
[1] https://www.marketbeat.com/instant-alerts/ubs-upgrades-wynn-resorts-to-buy-with-pt-raised-to-147-2025-07-02/
[2] https://finance.yahoo.com/news/al-marjan-macau-strength-drive-125241602.html
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