Raymond James downgraded Penn Entertainment (PENN) to Market Perform from Outperform without a price target. The analyst cites valuation for the downgrade, saying recent activist pressure and takeover rumors have pushed shares up 21% since May 20. Penn’s path to profitability in digital remains uncertain, and Raymond James does not expect any dramatic shift in strategy or an outright sale of the company in the near-term, the analyst tells investors in a research note. As such, the firm is recommending investors take profits and look for better risk-adjusted opportunities in the sector. Caesars Entertainment (CZR) is its top pick.
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