UPDATE: Goldman Sachs Upgrades Penn National Gaming to Neutral on Asset Separation
Goldman Sachs raised its rating on Penn National Gaming (NASDAQ: PENN) from Sell to Neutral and increased its price target from $36 to $49.
Goldman Sachs noted, "On November 15, PENN Gaming announced its intent to pursue the separation of its real estate assets from its operating assets. … We upgrade PENN to Neutral from Sell as we now believe that over the next 12-months the share price performance will be equally driven by operational results and investor reaction to REIT conversion approval milestones. Since adding to the Sell list on 02/15/10, PENN +102% vs. S&P +29%. Since our downgrade PENNs outperformance was driven by better-than-expected margins as well as the unexpected REIT announcement."
Penn National Gaming closed at $47.35 on Monday.
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