What Analysts Are Saying About PENN Entertainment Stock

During the last three months, 6 analysts shared their evaluations of PENN Entertainment PENN, revealing diverse outlooks 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.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $26.83, a high estimate of $33.00, and a low estimate of $21.00. A 7.48% drop is evident in the current average compared to the previous average price target of $29.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of PENN Entertainment among financial experts is revealed through an in-depth exploration 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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PENN Entertainment. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PENN Entertainment compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of PENN Entertainment's stock. This examination reveals shifts in analysts' expectations over time.

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.

Delving into PENN Entertainment's Background

Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 89% of total sales in 2023 (11% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates mid-30% 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 Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.

Financial Insights: PENN Entertainment

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, PENN Entertainment faced challenges, resulting in a decline of approximately -12.0% in revenue growth as of 31 December, 2023. This signifies a reduction 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -25.66%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): PENN Entertainment's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -10.71%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): PENN Entertainment's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.22%, the company may face hurdles in achieving optimal financial performance.

Debt Management: PENN Entertainment's debt-to-equity ratio is below the industry average. With a ratio of 3.6, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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