Stifel Nicolaus analyst Jeffrey Stantial maintained a Hold rating on PENN Entertainment yesterday and set a price target of $19.00.
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Jeffrey Stantial has given his Hold rating due to a combination of factors surrounding PENN Entertainment’s current and future prospects. The company is embarking on new projects, such as the Hollywood Joliet and Aurora casinos, which are expected to yield mid-teens percentage returns. However, these returns are tempered by the highly saturated Chicagoland gaming market and intense competition, which could limit potential upside.
Despite the promising location and improved product quality of these new ventures, macroeconomic uncertainties and the company’s balance sheet concerns necessitate a cautious approach. While there is potential for upside in FY26 consensus with the success of these projects, the market’s cautious stance and the mixed track record of similar projects in the region suggest a prudent Hold rating is appropriate at this time.
In another report released on August 11, Jefferies also maintained a Hold rating on the stock with a $19.00 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PENN in relation to earlier this year.