Bank (DB) increased its price target on shares of Penn National Gaming
Inc. (NASDAQ:PENN) to $52 from $46, while reaffirming its "Buy" rating.
Following the company's solid first quarter earnings and increase to
guidance/estimates, the brokerage believes what began as a questionable
2012 is shaping up to be a best of both worlds scenario.
present, DB sees: solid, yet beatable EBITDA guidance manifesting in
continued beats and raises, abating/rationalizing cannibalization fears,
an improving margin story that continues to garner steam, and a
development pipeline that will begin to show its power in the Q2-2012.
For these reasons, the brokerage continues to view Penn National
Gaming as the best way to play the domestic consumer recovery in gaming.
The firm said PENN remains top regional gaming idea.
National Gaming owns and manages gaming and pari-mutuel properties in
the United States and Canada. The company is involved in hotel, dining,
retail, admissions, program sales, concessions, racing operations, and
other ancillary activities.
PENN closed Friday's regular trading up 2.33% at $45.58.