UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Penn National Gaming

In a report published Friday, Deutsche Bank reiterated its Buy rating on Penn National Gaming (NASDAQ: PENN), but slightly lowered its price target from $65.00 to $64.00.

Deutsche Bank noted, “Post 4Q12 results & lowered guidance, we reaffirm our Buy given: 1) we think the regional fundamental headwind has been largely mitigated as the stock is poised to trade more on deal value than the quarterly EPS, 2) we continue to have a favorable view of the REIT conversion and believe, over time, the merits of the PropCo (attractive tenant coverage ratio, attractive div. yield, & the flexibility to acquire assets in an accretive manner in a presumably favorable rate environment) will be appreciated, and 3) we believe current levels present a free option on any inflection in regional gaming and meaningfully discount the potential dividend growth of the PropCo entity in 2014.”

Penn National Gaming closed on Thursday at $47.92.

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