Morgan Stanley Maintains Overweight, $48 PT on Penn National Gaming

Morgan Stanley reiterates its Overweight rating and $48 target price on Penn National Gaming PENN, believing catalytic developments from the company may be forthcoming. Morgan Stanley says, "Development Pipeline Still Not in Price. Our $48 PT (+20%) comprises PENN's existing ops. ($41), project pipeline ($12), and cannibalization (-$5). ...We remain confident that our fully ramped, $250-mn EBITDA in OH, which is 2x consensus, is achievable. We believe our modeling approach, which considers key population metrics, provides a more realistic scenario than standard consensus methodology." PENN closed at $40.72 a share on Friday.