Stephen Grambling, an analyst from Morgan Stanley, maintained the Hold rating on PENN Entertainment. The associated price target remains the same with $17.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Stephen Grambling has given his Hold rating due to a combination of factors impacting PENN Entertainment’s current financial performance and future prospects. The company’s second-quarter revenue exceeded expectations, but its EBITDA was in line with forecasts, indicating a mixed performance. The digital segment showed some improvement with narrowing losses, yet there remains uncertainty about achieving positive EBITDA and market share gains, particularly in the ESPN Bet business.
Grambling notes that while there are positive trends in regional revenues, the overall margin pressures due to higher operating expenses are a concern. Additionally, the upcoming NFL season is seen as crucial for ESPN Bet to demonstrate its ability to capture market share and move towards profitability. Investors are advised to look for further guidance and strategic actions from management to address these challenges and capitalize on potential opportunities in the digital and retail segments.
According to TipRanks, Grambling is a 4-star analyst with an average return of 6.7% and a 63.31% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Las Vegas Sands, and DraftKings.
In another report released yesterday, Stifel Nicolaus also reiterated a Hold rating on the stock with a $19.00 price target.