Nomura Securities Maintains a 'Neutral' on Penn National Gaming (PENN); Raising Price Target

Nomura Securities maintains a 'Neutral' on Penn National Gaming (NASDAQ: PENN) price target raised from $44 to $48.

Analyst, Harry C. Curtis, said, "PENN is seeing a “slight” increase in spend per visit, and expects a “slow” recovery, which is embedded in today’s guidance lift. We are raising our estimates to reflect the expected extra month of operations at Columbus in Q4’12, which more than offsets the impact to our estimates from the delayed opening of Toledo. Our 2012 net EBITDA est. is now $762m, up from $729m. Our 2013 net EBITDA est. is $839m vs. prior $834m, as the higher 2012 East Coast base was offset by the lower base of the IL properties PENN is up 17% YTD (vs. S&P up 9.5%). PENN’s stock is currently valued at ~8.4x our forward EBITDA, above its 10-yr avg of ~8x. Given so much uncertainty over the competitive environment, we do not see much room for multiple expansions."

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 $44.54 yesterday.

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