Forecasting The Future: 10 Analyst Projections For PENN Entertainment

PENN Entertainment PENN underwent analysis by 10 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $23.5, along with a high estimate of $30.00 and a low estimate of $19.00. Highlighting a 2.08% decrease, the current average has fallen from the previous average price target of $24.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of PENN Entertainment among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to PENN Entertainment. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PENN Entertainment compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for PENN Entertainment's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into PENN Entertainment's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on PENN Entertainment analyst ratings.

About PENN Entertainment

Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands, including Hollywood Casino and Ameristar. Land-based casinos represented 89% of total sales in 2023; 11% was from the interactive segment, which includes sports, iGaming, and media revenue. The retail portfolio generates mid-30s EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch in November 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.

PENN Entertainment: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Challenges: PENN Entertainment's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.7%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: PENN Entertainment's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -1.63%, the company may face hurdles in effective cost management.

Return on Equity (ROE): PENN Entertainment's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.88%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.17%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: PENN Entertainment's debt-to-equity ratio is below the industry average. With a ratio of 3.73, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.