PENN Entertainment stock price target lowered to $22 at Needham on weak handle trends

Published 08/08/2025, 13:08
PENN Entertainment stock price target lowered to $22 at Needham on weak handle trends

Investing.com - Needham has reduced its price target on PENN Entertainment Inc (NASDAQ:PENN) to $22.00 from $25.00 while maintaining a Buy rating on the stock. The company, currently trading at $16.92, has seen its shares decline about 15% year-to-date, with InvestingPro data showing significant price volatility.

The price target adjustment follows lower-than-expected interactive handle trends in the second quarter of 2025, according to Needham’s research note released Friday.

Despite the reduction, Needham maintained its Buy rating, noting that the key question for investors is whether PENN will be able to gain digital market share during the upcoming NFL season.

The research firm acknowledged that results this year have fallen below expectations, but pointed out that PENN’s product launch cycle is back-end loaded for the NFL season, potentially benefiting from the launch of FanCenter in the ESPN Bet app and the introduction of the ESPN flagship streaming service.

Needham characterized market expectations for PENN as "low," while emphasizing that the current period represents a critical opportunity for the company to gain market share.

In other recent news, Penn Entertainment Inc. reported strong second-quarter 2025 earnings, significantly surpassing market expectations. The company delivered an earnings per share of $0.10, outperforming the forecasted loss of $0.02, which represents a 600% surprise. Additionally, revenue for the quarter reached $1.77 billion, exceeding the anticipated $1.73 billion. This robust performance led JMP Securities to raise its price target for Penn Entertainment from $24 to $25 while maintaining a Market Outperform rating. The company’s EBITDAR of $392 million was in line with analyst forecasts, further solidifying its financial standing. These developments highlight Penn Entertainment’s resilience in the market. Investors are closely monitoring these updates for potential impacts on the company’s future trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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