Deutsche Bank drops gaming coverage

Deutsche Bank has dropped its equity research coverage of 17 gaming companies and its lead analyst has left to form an independent research and consulting firm based in Las Vegas.

Bill Lerner, along with equity analyst Grant Govertsen and institutional sales expert Rich Moriarty, left Deutsche Bank to form Union Gaming Group.

“We have seen a trend developing toward branded analysts going independent and wanted to capitalize on that,” Lerner told Reuters.

Deutsche Bank’s research division issued a note late that said the firm had discontinued coverage of 17 casino and gaming companies, including MGM Mirage, Wynn Resorts and Las Vegas Sands Corp.

Lerner moved Deutsche Bank’s gaming research coverage to Las Vegas in 2006.

Deutsche Bank will continue to offer research and analysis of the gaming industry’s high yield bonds and bank debt, a division headed by Andrew Zarnett.

Lerner said clients of Union Gaming would be institutional investors, as well as gaming companies and global governments.

“Wall Street right now is running away from the industry,” Lerner said. “We are running toward it.”