Brean Murray Carret & Co. Downgrades Penn National Gaming (PENN) to Hold; Trends Remain Solid but Note of Caution on Growth Trajectory

Brean Murray Carret & Co. downgraded Penn National Gaming (NASDAQ: PENN) to Hold.

Brean analyst says, "Although Penn’s guidance for flattish EBITDA in 2012 is in-line with our estimates, we believe investors will now take a more cautious approach to Penn’s growth profile vs. cannibalization of its existing assets, limiting near-term upside for the stock. Management’s early guidance or reference to Street estimates that were way too high in 2012 is understandable, but we also believe 2013 estimates will likely end up too high as well. In a volatile market without a visible catalyst in 2012, we believe a lower long-term valuation multiple is likely (8.0x vs. previous estimate of 8.5x our 2013 estimate)."

For more ratings news on Penn National Gaming click here and for the rating history of Penn National Gaming click here.

Shares of Penn National Gaming closed at $37.13 yesterday.

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