Morgan Stanley Provides Color on Penn National Gaming, Overweight

Morgan Stanley provided color on Penn National Gaming PENN. In a research report published today, Morgan Stanley states, "PENN remains our preferred way to play the recovery in domestic gaming revenues. We believe there is upside to current 2011 and 2012 consensus estimates, as same-store growth estimates remain achievable / beatable through 2012 and the Ohio leg of the company's development pipeline opens." In the same report, Morgan Stanley issued a warning by saying, "we expect PENN to be a “one-step-back, two- steps-forward” stock, as potential legislative changes in Ohio could cause negative estimate revisions in the near term." At the moment, Morgan Stanley has an Overweight rating and a price target of $45 on the company's stock. On Wednesday, Penn National lost 2.67% to close the day at $39.42.