Citizens reiterates Market Outperform rating on PENN Entertainment stock

Investing.com - Citizens has reiterated its Market Outperform rating and $24.00 price target on PENN Entertainment Inc (NASDAQ:PENN).

The firm maintains its view that betting exchanges do not pose a competitive threat to profitability for existing operators in legal sports betting states.

Citizens specifically noted that the primary selling point of better pricing on betting exchanges like Kalshi is "not true for now" when compared to traditional betting platforms.

The analysis suggests that non-price-sensitive players benefit from a larger betting menu on traditional betting apps, while price-sensitive customers are not receiving superior pricing for the most liquid sports markets on exchanges.

PENN Entertainment was included among several gaming operators that Citizens believes will not face profitability challenges from betting exchanges, alongside DraftKings, Flutter, MGM Resorts, Caesars Entertainment, and Rush Street Interactive.Among these operators, InvestingPro data shows Flutter has demonstrated strong revenue growth of 13.77% with total revenue reaching $15.44B. Despite not being profitable over the last twelve months, analysts expect Flutter to turn profitable this year. The stock has also shown resilience with an 8.87% return over the past week.Want deeper insights into gaming stocks? InvestingPro offers comprehensive analysis of 1,400+ US equities through intuitive Pro Research Reports, transforming complex data into actionable intelligence for smarter investment decisions.

In other recent news, Flutter Entertainment has been the focus of several analyst reports and regulatory updates. UBS adjusted its price target for Flutter Entertainment, raising it to $340 from $320, while maintaining a Buy rating due to reduced uncertainty following the resolution of UK tax concerns. Meanwhile, HSBC upgraded Flutter Entertainment’s stock rating from Hold to Buy, although it lowered its price target to $228 from $265, citing valuation as a key factor. Additionally, Wells Fargo initiated coverage on Flutter Entertainment with an Overweight rating and set a price target of $272, highlighting the company’s exposure to high-growth U.S. digital markets and strong cash flow generation.

In other company news, a federal judge in Las Vegas lifted an order that had previously blocked Nevada gaming regulators from taking enforcement actions against Kalshi Inc., a predictions-market startup. This decision allows the Nevada Gaming Commission and Nevada Gaming Control Board to proceed with potential actions against Kalshi. These developments reflect the ongoing regulatory and market dynamics affecting the industry.

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