Deutsche Bank on Penn National Gaming (PENN)

Yesterday Penn National (Nasdaq: PENN) announced plans to split its operations.

Commenting on the development, analyst Carlo Santarelli of Deutsche Bank said "In a shocking and somewhat confusing release at first blush, we believe PENN has finally done what has been long discussed in gaming, executed a successful plan for an OpCo/PropCo structure."

Santarelli thinks that in doing so PENN has unlocked significant value.

"We would be buyers of shares on the open and believe the sum of the parts yields a $65 valuation. We are likely to have more post tomorrow's 8:30AM conference call," he said.

Deutsche Bank has a Buy rating on Penn National Gaming with a price target of $48.00.

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 $37.24 yesterday.

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