Penn Entertainment upgraded to Outperform from Market Perform at Citizens JMP

Citizens JMP upgraded Penn Entertainment (PENN) to Outperform from Market Perform with a $24 price target Penn has experienced several years of “well-known headwinds” primarily resulting from the build-out of its online businesses, and the stock is down 87% from its all-time high, the analyst tells investors in a research note. However, the firm believes “we are nearing an inflection point in the story” and it sees 38% upside in the shares. “After several years of overpromising and underdelivering, leading to a bloated cost structure and balance sheet, we see the light at the end of the tunnel,” contends Citizens. It sees several catalysts for Penn, including casino openings and shareholder returns.