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UPDATE: FBR Capital Markets Initiates Coverage on Penn National Gaming on Reasonable Valuation

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In a report published Wednesday, FBR Capital Markets analyst Jake Fuller initiated coverage on Penn National Gaming (NASDAQ: PENN) with a Market Perform rating and $14.25 price target.

In the report, FBR Capital Markets noted, “We are initiating coverage of Penn National Gaming, Inc. (PENN) with a Market Perform rating and a $14.25 price target. PENN recently completed the spin-off of the industry's first REIT, Gaming and Leisure Properties (GLPI). While we view the transaction favorably as it clearly unlocked value by shifting half of total EBITDA into a higher-multiple REIT structure, the remaining operating company is still saddled with its regional market exposure, limited growth, and now annual rent to the REIT. While the ‘OpCo' (PENN) is trading at the lower end of the traditional multiple range for a regional operator, we see ongoing estimate risk and would look for a better entry point or signs of a sustained improvement in regional trends.”

Penn National Gaming closed on Tuesday at $14.28.

Latest Ratings for PENN

DateFirmActionFromTo
Oct 2014Credit SuisseMaintainsOutperform
Oct 2014Stifel NicolausMaintainsBuy
Jul 2014BarclaysMaintainsOverweight

View More Analyst Ratings for PENN
View the Latest Analyst Ratings

Posted-In: FBR Capital Markets Jake FullerAnalyst Color Initiation Analyst Ratings

 

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