Expert Outlook: PENN Entertainment Through The Eyes Of 5 Analysts

In the latest quarter, 5 analysts provided ratings for PENN Entertainment PENN, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for PENN Entertainment, revealing an average target of $24.2, a high estimate of $27.00, and a low estimate of $21.00. This upward trend is apparent, with the current average reflecting a 8.04% increase from the previous average price target of $22.40.

Interpreting Analyst Ratings: A Closer Look

The perception of PENN Entertainment by financial experts is analyzed through recent analyst actions. The following summary presents 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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of PENN Entertainment compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of PENN Entertainment's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of PENN Entertainment's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on PENN Entertainment analyst ratings.

All You Need to Know 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.

Financial Insights: PENN Entertainment

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: PENN Entertainment's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 1.22%. This signifies a substantial increase in the company's 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 is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.24%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.2%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): PENN Entertainment's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.24%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: PENN Entertainment's debt-to-equity ratio is below the industry average. With a ratio of 3.69, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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