Penn National Gaming, Inc. (PENN) Price Target Lowered
February 05, 2010 10:01 AM
Analyst Dennis I. Frost at KeyBanc Capital Markets has released an update on Penn National Gaming, Inc. (NASDAQ: PENN). The company reported fourth-quarter results in line with KeyBanc’s expectations.
According to KeyBanc’s calculation, the adjusted EPS were $0.11 for the quarter. KeyBanc has lowered the 2010 EPS estimate, which reflects the tough business conditions, higher interest and development investments. The new EPS estimate is of $1.01 for 2010. The price target for the company has been lowered from $37 to $29.
According to KeyBanc, the company will face a tough operating environment throughout 2010, and into 2011. However, it believes that the company still remains an attractive investment option, especially to value investors, given its strong cash position, low leverage, and free cash flow. KeyBanc has maintained a Buy rating for Penn National Gaming, Inc.
