Balanced Outlook on PENN: Retail Outperformance Offsets Interactive Headwinds, Justifying Hold Rating

Needham analyst Bernie McTernan has maintained their neutral stance on PENN stock, giving a Hold rating on April 15.

Bernie McTernan has given his Hold rating due to a combination of factors, starting with PENN’s operational outperformance in the first quarter as both retail and interactive adjusted EBITDAR exceeded expectations. At the same time, management trimmed its 2026 earnings outlook slightly as the anticipated costs of launching interactive operations in Alberta more than offset improved trends in the core retail business.

PENN’s brick‑and‑mortar casinos showed their strongest quarterly growth in three years, supported by successful projects in the West and Midwest and solid execution at key properties, with additional developments in Columbus and Aurora set to open in June. However, while iGaming and online sports betting revenues hit record levels and guidance for retail earnings was nudged higher, the reduction in interactive profit expectations and higher interest expense temper the upside, leading McTernan to maintain a balanced, Hold stance on the shares.

According to TipRanks, McTernan is a 3-star analyst with an average return of 1.4% and a 42.89% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, PENN Entertainment, and Chewy.

In another report released on April 15, Wells Fargo also maintained a Hold rating on the stock with a $18.00 price target.