UPDATE: Bank of America Initiates Coverage on Gaming & Leisure Properties with Neutral Rating, $50 PT as Rate Exposure Offsets M&A

In a report published Monday, Bank of America analyst Shaun C. Kelley initiated coverage on

with a Neutral rating and $50.00 price target. In the report, Bank of America noted, “Following the spin-off of PENN's real estate, we are initiating coverage of Gaming & Leisure Properties, Inc. (GLPI), the gaming industry's first real estate investment trust. While we are positive on GLPI's stable cash flow given its triple-net structure, a high dividend yield (6.0%), and growth via M&A, we also see risks from rising interest rates and a high valuation. We are initiating at Neutral and a $50 PO based on 15x our 2014E EBITDA of $437M.” Gaming & Leisure Properties closed on Friday at $46.12.