Analyst Bernie McTernan of Needham maintained a Buy rating on Penn National Gaming (PENN – Research Report), reducing the price target to $25.00.
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Bernie McTernan has given his Buy rating due to a combination of factors, despite some challenges faced by Penn National Gaming. The company recently reported lower than expected guidance for 2025, with deeper losses in its interactive segment and a slight decline in property-level adjusted EBITDA year-over-year. However, McTernan believes that the partnership between Penn and Disney, particularly through ESPN Bet, still holds potential for creating shareholder value.
McTernan remains optimistic that both Penn and Disney are motivated to make their collaboration successful, which could involve better leveraging data to offer a unique and personalized betting experience. This potential for innovation and growth in the betting space underpins the Buy rating, as McTernan sees opportunities for Penn to enhance its position in the market despite the current setbacks.
McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Super Group (SGHC), and Rush Street Interactive. According to TipRanks, McTernan has an average return of 3.4% and a 47.91% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $23.00 price target.