BTIG downgrades Drive Shack with no ‘imperative’ capital raise

BTIG analyst Peter Saleh downgraded Drive Shack to Neutral from Buy without a price target. The company’s “imperative” capital raise has failed to materialize, Saleh tells investors in a research note. The analyst says the lack of capital raise, coupled with recent delay in its quarterly filing and potential delisting leads him to be more cautious on the shares. With that said, Saleh believes Drive Shack has several capital raise options including the sale of its New Mexico golf course, executing a sale-leaseback on the Raleigh Drive Shack, and/or monetization of its traditional golf business. He moved to the sideline to reflect the additional uncertainty in the company’s ability to develop Puttery locations.