UPDATE: Topeka Capital Markets Downgrades Penn National Gaming from Hold to Sell

Topeka Capital Markets downgrades Penn National Gaming (NASDAQ: PENN) from a Hold to a Sell rating and lowers its price target from $43 to $38.Topeka Capital Markets notes, “We are downgrading PENN from Hold to Sell and lowering our price target from $43 to $38. Since 2011, PENN has risen 19%, outperforming the S&P 500 by 9%. Yet, in an industry characterized by declining same-store revenues, PENN remains particularly vulnerable to new competition. We are increasing our 2013E for PENN based on the pending acquisition of Harrah's St. Louis (Caesars Entertainment (CZR-$10.97:NR)) and expect EPS to increase when VLT's (video lottery terminals) are installed at PENN's Ohio racetracks. However, if Maryland were to expand gaming -- an eventuality we think the Street has largely written off -- resulting profit declines in West Virginia and Maryland could overshadow growth in the Midwest.”Penn National Gaming closed at $45.14 on Friday.