Nomura Securities Maintains a 'Neutral' on Penn National Gaming (PENN); Update to Maryland Gaming Expansion

June 20, 2012 8:14 AM EDT Send to a Friend
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Price: $11.49 +1.06%

Rating Summary:
    11 Buy, 9 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 14 | New: 38
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Nomura Securities maintains a 'Neutral' on Penn National Gaming (NASDAQ: PENN) price target of $48.00.

Analyst, Harry Curtis, said, "A work group considering gaming expansion possibilities will meet on 6/20 at 11am (ET). Recommendations from this meeting could lead to a legislative special session in July. Without table games, we estimate Charles Town’s EBITDA could drop to ~$120M in 2013 from ~$165M in 2012. If table games are legalized in Maryland, our street-low EBITDA estimate for Charles Town could drop further to ~$100M when rolled out. The primary uncertainty surrounding the stock is the amount of EBITDA PENN will lose owing to competitive pressure in 2012-13. We believe this uncertainty limits PENN’s upside potential in the next 6-12 months, leading to our Neutral rating.

For an analyst ratings summary and ratings history on Penn National Gaming click here. For more ratings news on Penn National Gaming click here.

Shares of Penn National Gaming closed at $45.19 yesterday.




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