
Penn Entertainment (PENN) Stock Forecast & Price Target
Penn Entertainment (PENN) Analyst Ratings
Bulls say
PENN Entertainment maintains a robust financial position, operating 43 properties across 20 states, with land-based casinos generating 85% of total sales in 2024 and achieving mid-30s EBITDAR margins. The company is experiencing positive momentum in its iCasino segment, with a quarter-over-quarter increase in gross gaming revenue share in Michigan, complemented by a strong partnership with ESPN set to commence in November 2023, enhancing its digital wagering capabilities. Furthermore, Penn's strategic focus on emerging markets and projected ~$1 billion growth project openings signals a promising outlook for sustained revenue expansion and market leadership in the interactive gaming sector.
Bears say
Penn Entertainment's stock faces a negative outlook primarily due to a sequential share loss that appears to be driven by promotional activities, alongside a decline in reinvestment as a percentage of handle, which remains below average levels across most reporting states. Additionally, current valuations may reflect weak regional fundamentals, and any potential reassessment of retail multiples is likely tied to uncertain forecasts regarding gross gaming revenue (GGR) and profit margins. Furthermore, several downside risks loom, including challenges in scaling the interactive segment efficiently, adverse economic conditions, increasing competition, severe weather impacts, and potential rises in gaming tax rates or other 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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