UPDATE: Goldman Sachs Reiterates Sell Rating, Raises PT on Penn National Gaming

In a report published Friday, Goldman Sachs Group reiterated its Sell rating on Penn National Gaming PENN, and slightly raised its price target from $35.00 to $36.00. Goldman Sachs noted, “3Q reported EBITDA was materially impacted by lobbying spend in Maryland. Additionally, In 4Q to-date, they have spent an additional $11mn in Maryland. However, these negatives are slightly offset by the inclusion of their Harrah's St. Louis acquisition, which was not previously in our 2012 forecasts. Our 2012E EBITDA (after stock comp and corp. expense and inclusive of Maryland lobbying costs in both 3Q and 4Q) estimate falls to $724 mn from $739 mn. Our 2013E-14E EBITDA estimates (after stock comp and corporate expense) move to $868 mn and $926 mn from $825 mn and $883 mn, respectively. Our estimates move higher as we include the newly acquired St. Louis casino into our forecasts, as well as the opening of the two Ohio racinos in 2014 (we assume a fall 2014 opening). These are offset somewhat by cannibalization in Baton Rouge, Lawrenceburg, Charles Town, Perryville Maryland, Penn National and Boomtown Biloxi.” Penn National Gaming closed on Thursday at $42.90.