Nollenberger Upgrades Penn National Gaming (PENN) to Buy
Nollenberger upgrades Penn National Gaming (NASDAQ: PENN) from Neutral to Buy. Price target $67.
Nollenberger analyst says, "On June 15, Penn National accepted an $8.9 billion or $67 per share takeover bid by affiliates of private equity firms Fortress Investment Group and Centerbridge Partners. The price tag equates to 12.1x our FY08 EBITDA estimate of $733 million. The $67 per share takeout price provides over 20% upside from last night's close. The recent turmoil in the credit markets is responsible for the sell-off, in our opinion. We believe investors are concerned that the deal may need to be re-priced lower or possibly even canceled. We say these fears are overblown."
Nollenberger analyst says, "On June 15, Penn National accepted an $8.9 billion or $67 per share takeover bid by affiliates of private equity firms Fortress Investment Group and Centerbridge Partners. The price tag equates to 12.1x our FY08 EBITDA estimate of $733 million. The $67 per share takeout price provides over 20% upside from last night's close. The recent turmoil in the credit markets is responsible for the sell-off, in our opinion. We believe investors are concerned that the deal may need to be re-priced lower or possibly even canceled. We say these fears are overblown."
