UPDATE: KeyBanc Downgrades Penn National Gaming to Hold on Valuation, Week Sentiment
KeyBanc downgraded Penn National Gaming (NASDAQ: PENN) from Buy to Hold and suspends its price target of $51 a share.
KeyBanc commented, "In marked contrast to most gaming stocks, the shares have appreciated 9% year-to-date (S&P 500 is up 8%, the Dow is up 5% and our KeyBanc gaming index is flat for the year, respectively, during the same period). In fact, the shares rose 4% in 2Q12 while the gaming group and the S&P declined 10% and 3%, respectively. That alone would not cause our change of posture. However, when combined with near-term focus on weak consumer sentiment, new competition entering a number of PENN's markets and possible expansion of gaming in Illinois and Maryland, we believe the shares will perform more in line with the general market over the next couple of quarters.
Penn National Gaming closed at $41.53 on Friday.
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