Canaccord Genuity analyst Jason Tilchen maintained a Buy rating on PENN Entertainment yesterday and set a price target of $26.00.
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Jason Tilchen has given his Buy rating due to a combination of factors that highlight PENN Entertainment’s potential for growth and value creation. The company reported strong second-quarter results, with revenue surpassing expectations, although profitability was slightly below consensus. PENN’s retail business is effectively managing competitive pressures, and new projects, such as the upcoming Joliet facility, are expected to enhance future performance.
Moreover, PENN’s digital platform is showing positive momentum, driven by favorable outcomes in online sports betting and the growth of its online casino app. Despite some challenges, such as increased costs from new launches and tax changes, the company remains optimistic about its digital segment’s future profitability. The integration with ESPN’s media ecosystem could provide additional growth opportunities, and the current valuation presents an attractive risk/reward scenario for investors.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 20 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.