JPMorgan is betting on regional gaming in 2017, naming Pinnacle Entertainment  (PNK) and Boyd Gaming  (BYD) as its top picks in the sector. The firm sees strong cash flow yields across the entire sector in 2017 and raised Pinnacle's price target to $18 from $17, while maintaining Boyd's $24 price target.

But Penn National Gaming  (PENN) was downgraded to neutral from overweight because of increased competition at its Charleston, W.V., casino from the recently opened $1.4 billion MGM (MGM) National Harbor property in neighboring Maryland.

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