
Penn Entertainment (PENN) Stock Forecast & Price Target
Penn Entertainment (PENN) Analyst Ratings
Bulls say
PENN Entertainment has demonstrated a strong financial position with land-based casinos contributing 85% of total sales, bolstered by mid-30s EBITDAR margins from its retail portfolio, enhancing its ability to pursue digital wagering licenses. The company is also witnessing positive trends in its interactive segment, as indicated by rising iCasino Gross Gaming Revenue (GGR) shares in Michigan, with Q2TD GGR increasing from 2.6% to 2.8%, and flat performance in New Jersey. Moreover, theScore's integration facilitates access to sports betting and iGaming technology, positioning PENN favorably in the expanding digital landscape.
Bears say
PENN Entertainment's stock faces a negative outlook primarily due to a sequential share loss attributed to promotional pressures, with reinvestment as a percentage of handle declining significantly more than market averages, resulting in below-average figures across states. Additionally, while the company's current valuation is below historical averages, it reflects subdued regional fundamentals, suggesting that any potential re-rating of the Retail multiple hinges on challenging forecasts for gaming revenue and margin improvements. Furthermore, significant downside risks include difficulties in scaling the Interactive segment profitably, adverse economic conditions, heightened competition, potential severe weather impacts, and the likelihood of increased gaming taxes or regulatory changes.
This aggregate rating is based on analysts' research of Penn Entertainment and is not a guaranteed prediction by Public.com or investment advice.
Penn Entertainment (PENN) Analyst Forecast & Price Prediction
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