Penn National Gaming (PENN) PT Raised to 'Street High' $85 at Stifel; Portnoy Momentum Trade Can Continue

Stifel analyst Steven M. Wieczynski reiterated a Buy rating and raised the price target on Penn National Gaming (NASDAQ: PENN) to a 'Street High' $85.00 (from $47.00) after shares rose an impressive 174% YTD compared to the S&P's +6%. Rather than downgrade the stock on valuation, the analyst revisited his assumptions and found them conservative enough to increase numbers.

He stated "We took an in-depth look into our assumptions around PENN’s core operations as well as our long-term sports betting/iGaming assumptions. It became abundantly clear that a lot of our previous assumptions were way too conservative and needed to be revised higher. After making a handful of positive changes to our assumptions, we are raising our target price to $85. While some would argue PENN shares could be overvalued, we believe they can continue to work, especially into November, as we expect a number of states to pass gaming legislation that should keep the sports betting/iGaming momentum rolling".

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