Imperial Capital Upgrades Penn National Gaming (PENN) to Outperform on Split-Up Plan

November 16, 2012 1:14 PM EST
Get Alerts PENN Hot Sheet
Price: $13.42 +2.76%

Rating Summary:
    15 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
Trade PENN Now!
Join SI Premium – FREE
Imperial Capital upgraded Penn National Gaming (NASDAQ: PENN) from In-Line to Outperform with a price target of $60.00 (from $47.00) following move to split company and convert to REIT.

The firm comments, "We view the company’s announcement as a positive for the PENN stock. After the spin-off of its real estate assets and the subsequent sale-lease-back, Penn National (OpCo) will be a management company with 5.5x total leverage. We think the remaining shares could be worth around $5, based on a 6.5x valuation multiple, as shown in Figure 5. We think the spun-off REIT shares (PropCo) could be worth around $55 per share based on a 3.4% dividend yield (plus 25% premium yield over the industry average). That leads to a combined value of $60 per share for the PENN common shares."

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 $37.61 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst PT Change, Upgrades

Related Entities


Add Your Comment