Penn National Gaming, Inc. (PENN)

Penn National Gaming, Inc. (PENN) - Dennis Forst at KeyBanc Capital Markets

Analyst Dennis I Forst of KeyBanc Capital Markets maintains his "buy" rating on Penn National Gaming Inc (NASDAQ: PENN), while reducing his estimates for the company. The target price for PENN has been reduced from $37 to $29 Penn National Gaming has reported its Q4 operating results inline with the estimates 

Penn National Gaming, Inc. (PENN) - Morningstar

Penn National Gaming's PENN fourth quarter and full year results confirm our industry take that casinos are not immune to the weak consumer spending environment. The company's full year results came in slightly below our expectations, and management's outlook for 2010 was much softer than what we were expecting However, because management missed its own guidance for 2009, we wouldn't be surprised if it is setting the bar low in 2010 and more aggressively managing expectations 

Penn National Gaming, Inc. (PENN) - William Lerner at Union Gaming Group

"The entire selection process has never been made clear, and there has never been a definitive timetable for declaring a winner," Susquehanna Financial Group gaming analyst Robert LaFleur told investors Monday "While Penn seemed like a strong contender on the surface given its success in running racinos and a strong balance sheet, in our view, they were not seen as the favorite to win the license given that political considerations seemed to play a big part in the selection process" Union Gaming Group Principal Bill Lerner thought AEG could have the project open quickly because of its consortium of New York based architects and builders AEG's plans for the casino include restaurants and a parking garage Woolf said plans call for opening initially with 3,000 machines using existing facilities 

Penn National Gaming, Inc. (PENN) - Robert LaFleur at Susquehanna Financial Group

The bidding process began more than a year ago and turned cutthroat last summer as the competition sought varying angles to win the support of Paterson and state legislative leaders Penn National Gaming, for example, brought in hip hop music mogul Russell Simmons as a partner while AEG included support from a former New York congressman turned minister whose congregation includes Queens, the borough where Aqueduct is located One Democratic political insider told Crain's New York Business that having a political interest in Queens may have helped in the bid's dynamics Several Wall Street analysts were surprised that the Aqueduct contract wasn't awarded to a large casino operator "The entire selection process has never been made clear, and there has never been a definitive timetable for declaring a winner," Susquehanna Financial Group gaming analyst Robert LaFleur told investors Monday 

Penn National Gaming, Inc. (PENN) - Joel Simkins at Macquarie

Macquarie Securities gaming analyst Joel Simkins said investors weren't happy with Penn's interest in Fontainebleau 

Penn National Gaming, Inc. (PENN) - William Lerner at Union Gaming Group

At the time, Penn was making a lowball bid to acquire the bankrupt Fontainebleau, an offer that corporate raider Carl Icahn has since topped. Last week, Union Gaming Group principal Bill Lerner, in a research note to the firm's clients, suggested that it made tactical sense for Penn National to acquire Pinnacle to gain control of strategic assets in Indiana, Louisiana, Missouri and a casino site in Atlantic City.  

Penn National Gaming, Inc. (PENN) - Joel Simkins at Macquarie

Some analysts thought that Penn National could end up operating Gilbert's casinos in Cincinnati and Cleveland. "Clearly, we believe this is a home run for Penn National, but we believe there could be even more incremental opportunities in a potential management contract with Gilbert's properties, given his lack of experience in casino operations," Macquarie Securities gaming analyst Joel Simkins said. Investors are also bullish on slot machine makers' prospects in Ohio, where up to 20,000 new slot machines could be added at the four casinos. "Ohio represents a meaningful new market opportunity for gaming equipment and technology providers," Roth Capital Markets gaming analyst Todd Eilers said in a research report. 

Penn National Gaming, Inc. (PENN) - Brian McGill at Janney Montgomery Scott

Still, analysts said resort style casinos in Ohio are a slam dunk. "The passage is a positive for Penn and for the equipment companies as it opens up a new market," Susquehanna Financial Group gaming analyst Robert LaFleur said. Several analysts, including Katz and Janney Montgomery Scott's Brian McGill, said the casinos' opening could add up to $5 a share to Penn's stock price. Investors agreed Wednesday. Shares of Penn National, up as much as 10 percent during the day on the Nasdaq National Market, closed at $28.19, up $1.99, or 7.6 percent. 

Penn National Gaming, Inc. (PENN) - Robert LaFleur at Susquehanna Financial Group

Still, analysts said resort style casinos in Ohio are a slam dunk. "The passage is a positive for Penn and for the equipment companies as it opens up a new market," Susquehanna Financial Group gaming analyst Robert LaFleur said. Several analysts, including Katz and Janney Montgomery Scott's Brian McGill, said the casinos' opening could add up to $5 a share to Penn's stock price. Investors agreed Wednesday. Shares of Penn National, up as much as 10 percent during the day on the Nasdaq National Market, closed at $28.19, up $1.99, or 7.6 percent. 

Penn National Gaming, Inc. (PENN) - David Katz at Oppenheimer & Company

Ohio political leaders who opposed the referendum may be exploring legal challenges or could launch another referendum to replace parts of the measure. "Although we expect legal challenges and market infrastructure to take 24 months, the development is bullish for Penn," Oppenheimer gaming analyst David Katz told investors.  

Penn National Gaming, Inc. (PENN) - David Katz at Oppenheimer & Company

It is the state's fifth major gambling referendum in the last two decades. David Katz of Oppenheimer said in a client note that the referendum might impact Penn's stock because the casino operator is on tap to own and run two of the casinos if the referendum passes. "Although we offer no indication on the likelihood of the outcome of the vote, as it is presently too close to call, we believe a positive outcome for Penn could add significant value, which is not reflected in our forecast," Katz wrote. 

Penn National Gaming, Inc. (PENN) - David Katz at Oppenheimer & Company

* Revenue inches up . * Full year forecast lowered * Seeking strategic partner for Fontainebleau Las Vegas * Shares rise more than 5 percent (Adds outlook, analyst comments, company comment, share price; changes dateline, previously ATLANTA) LOS ANGELES, (Reuters) , Penn National Gaming Inc ( PENN.O ) said on Wednesday that third quarter profit fell from a year ago, when it posted big gains from fees related to a failed takeover of the casino operator when the buyer backed out. The company also lowered its full year forecast, but said August was the weakest month during the quarter. Its shares rose more than 5 percent in early trading. "The property operations were basically in line with our expectations and generally solid against what we perceive to be low expectations across the Street," Oppenheimer analyst David Katz said in a statement.