Casinos Run the Table

Casino stocks have been on a roll, and some investors are betting on continued strong growth in Las Vegas and gains from industry expansion as far afield as China.

But despite the lofty levels, some on Wall Street still think there's room for more gains. Notably, Merrill Lynch's David Anders, who lifted his price targets on shares of Harrah's Entertainment (HET Quote) to $83 from $72 and MGM Mirage (MGG Quote) to $80 from $65.

Those price targets would imply enterprise value-to-EBITDA -- or earnings before interest, taxes, amortization and depreciation -- multiples of 8.6 times for Harrah's and 10.6 times for MGM Mirage, at the high end of historic valuation ranges, wrote Anders in a research note. ...