Macquarie analyst Chad Beynon downgraded Penn National Gaming (PENN) to Neutral from Outperform with a price target of $66, up from $56. The company’s lease adjusted leverage will still be 5.0 times at the end of 2022, which could be viewed as problematic in the event of a pandemic second wave or slowed demand, Beynon tells investors in a research note. In addition, the upcoming “arms race” between DraftKings (DKNG), FanDuel, FoxBet, Pointsbet, BetMGM and Caesars (CZR) could lead to additional Penn National marketing expenses, not assumed in analysts’ models, adds the analyst. Beynon cites valuation, leverage concerns and competition for his downgrade of Penn National.