Goldman Sachs Has Buy On Penn National

Goldman Sachs has a Buy rating on shares of Penn National's (NASDAQ: PENN).

In a note to clients, Goldman Sachs writes, "The Maine Senate voted against legislation proposing the expansion of gambling in the state. Now that the bills have been defeated by the Senate, the issue will now be automatically sent to a public referendum in November because the legislation had been initiated by citizens in a petition drive.

The two bills, which call for a racino in Biddeford (operated by Scarborough Downs and Ocean Properties) and in Calais (operated by the Passamaquoddy Tribe), as well as a casino in Lewiston (operated by Great Fall Recreation and Development), would increase the number of gaming facilities in the state from two (Penn National's (PENN, $40.34, Buy) Hollywood Bangor and Black Bear Entertainment's Oxford County development) to five and would likely facilitate the introduction of table game operations at Hollywood Bangor. Meanwhile, there appears to be mixed support for the three gaming facilities among the public. Public referendums ultimately approved the Oxford County casino in 2010 and Hollywood Bangor in 2003, but rejected proposals for Sanford and in 2003 and Calais in 2008, which were backed by Native American tribes."

Shares of PENN gained 32 cents yesterday to close at $40.34, a gain of 0.8%.