In a report released yesterday, Jason Tilchen from Canaccord Genuity maintained a Buy rating on PENN Entertainment, with a price target of $26.00.
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Jason Tilchen has given his Buy rating due to a combination of factors that indicate a positive outlook for PENN Entertainment. The company’s recent strategic shift away from its partnership with ESPN is seen as a prudent move that could lead to profitability in its Interactive segment by 2026. This change is expected to help reset the narrative around PENN’s digital strategy, aligning with the strengthening performance of its core regional casino business.
Furthermore, despite mixed Q3 results, PENN’s land-based business remains stable, with revenue growth and encouraging performance at new locations like the Joliet casino. The company’s focus on rebranding its US online sports betting app to theScore Bet and leveraging its existing digital user base in Canada is anticipated to enhance its market presence. Additionally, PENN’s commitment to a more efficient cost structure and its new share repurchase program further support the positive long-term outlook for the stock.
According to TipRanks, Tilchen is a 2-star analyst with an average return of 0.8% and a 34.29% success rate. Tilchen covers the Consumer Cyclical sector, focusing on stocks such as Lucky Strike Entertainment, Super Group (SGHC), and PENN Entertainment.
In another report released today, Barclays also maintained a Buy rating on the stock with a $21.00 price target.