The Crown Resorts Ltd (ASX: CWN) share price is on course to have a strong finish to the week.
In afternoon trade the casino and resorts company's shares are up almost 4% to $12.92.
Why are its shares higher?
After the market closed on Thursday Crown advised that it has progressed a number of transactions as part of its ongoing debt reduction strategy.
According to the release, there are five transactions underway worth around $700 million to the company.
These include the sale of its share of a 34.6 acre vacant site on the Las Vegas Boulevard to Wynn Resorts for US$264 million, the potential sale of Crown's 62% interest in CrownBet for $150 million, and the sale of two floors of the Crown Sydney Residences at the Crown Sydney Hotel Resort to James Packer for $60 million.
This divestment has gone down well the market and one broker in particular.
A note out of Goldman Sachs reveals that its analysts have slapped a buy rating and $14.40 price target on Crown's shares as a result of its divestment plans.
Should you invest?
While I would have preferred the company to hold onto its CrownBet interest, overall I think management's divestment plan will ultimately create a lot of value for shareholders.
In light of this, I would agree with Goldman that Crown could be a good investment option today and would put it up there with rival Star Entertainment Group Ltd (ASX: SGR).
