
Penn Entertainment (PENN) Stock Forecast & Price Target
Penn Entertainment (PENN) Analyst Ratings
Bulls say
PENN Entertainment has shown strong financial performance, with land-based casinos comprising 85% of total sales for 2024, while the interactive segment contributes 15%, reflecting substantial growth potential in digital markets. The company's customer loyalty program, mychoice, boasts over 25 million members, enhancing opportunities for cross-selling between digital and retail channels, and the company anticipates a 20% year-over-year growth in skins revenue for FY25. Furthermore, recent product improvements have positioned PENN favorably in market share metrics, with the successful launch of the Hollywood iCasino app indicating early momentum in key states like Pennsylvania and Michigan.
Bears say
PENN Entertainment has experienced a significant decline of approximately 30% in its stock over the past two years due to increasing competitive pressures, low-end consumer challenges, high operating leverage, and unfavorable changes to its Interactive strategy, which have led to uninspiring financial results. In the fourth quarter, PENN reported an EBITDAR of $321 million, slightly below consensus expectations, with lower-than-expected hold rates in the Interactive segment contributing to a $44 million reduction in adjusted revenues. Additionally, limited free cash flow projections of $2 per share in 2026 and $4 in 2027, combined with risks such as deteriorating economic conditions and increasing competition, suggest ongoing challenges that could impede recovery and growth.
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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