Penn National Gaming (NASDAQ:PENN) was one of the best-performing stocks in 2020 with shares up over 200%.

What Happened: KeyBanc analyst Brett Andress initiated a Sector Weight rating on Penn National on Thursday due to a "lofty assumption" versus peers. Penn National was also downgraded from Hold to Sell by Loop Capital.

Barstool Sports offers a promising online sports betting and iGaming future, KeyBanc analysts said. The sports betting and iGaming market is given a total addressable market size of $13.5 billion by the analyst, ranking among the lowest figures from analysts.

“The stock has meaningfully outperformed over the past year, which we attribute to investors’ hope that Penn can successfully capitalize on the growing online gaming opportunity in the U.S.,” the Loop team said.

The downgrade comes based on valuation and the huge rise in Penn National in 2020.

Related Link: New York Represents A Huge Opportunity For Sports Betting: Here's What Could Be Next

Dave Portnoy, Jim Cramer React: The Loop downgrade caught the attention of Barstool Sports founder Dave Portnoy.

CNBC's Jim Cramer discussed the Penn downgrade on the network Thursday morning.

“I don’t know if this is well-timed,” Cramer said.

Not being able to expand Barstool Sportsbook beyond the Pennsylvania market was one of the reasons for the Loop downgrade.

What's Next: "Ill-advised to sell if Michigan is strong," Cramer said.

Online sports betting is expected to launch in Michigan any day now, according to Legal Sports Report. Barstool Sportsbook is one of 15 online sports betting operators expected in Michigan.

"We’re very, very close," Michigan Gaming Control Board Executive Director Richard Kalm said earlier this week.

PENN Price Action: Shares of Penn National are trading around $104 at publication time. Earlier this week, shares crossed the $100 mark for the first time and the company passed MGM Resorts (NYSE:MGM) by market capitalization.