PENN Raises Full Year CY10 Guidance Marginally Ahead Of Consensus
Analysts at Sterne Agee maintain their "buy" rating on Penn National Gaming Inc (NASDAQ: PENN). The target price for PENN is set to $37.
According to Sterne Agee, “Yesterday, PENN reported 2Q10 EBITDA of $148.2 million, ahead of our expectation for $142.5 million and consensus expectations for approximately $142 million. Continued tight cost control measures, including ongoing execution of refined marketing strategies, led to the EBITDA beat. The Company’s expanded gaming pipeline has begun to hit in the current quarter with table games in WV and PA.”
“The Company raised full year CY10 guidance slightly ahead of consensus. We believe guidance could be conservative given early positive indications of the impact of recently implemented table games in its WV and PA properties, coupled with its Perryville, Maryland slot property opening in late 3Q10, which will enjoy a first mover advantage,” the analysts add.
