PENN Entertainment stock price target raised to $19 from $17 at Stifel

Investing.com - Stifel has raised its price target on PENN Entertainment Inc (NASDAQ:PENN) to $19.00 from $17.00 while maintaining a Hold rating on the stock ahead of the company’s second-quarter earnings report. According to InvestingPro data, PENN currently trades at an EV/EBITDA multiple of 19.8x, with analysts setting targets ranging from $17 to $30.

PENN is scheduled to release its Q2 2025 financial results before the market opens on August 7, followed by a conference call at 9:00 AM ET. InvestingPro analysis indicates analysts expect the company to return to profitability this year, with an EPS forecast of $0.84 for FY2025.

Stifel’s adjustment reflects healthy state-reported brick-and-mortar gross gaming revenue growth during May and hold upside from favorable sport outcomes, partially offset by sequentially worsening impact from new competitive brick-and-mortar supply.

The analyst noted that PENN shares have outperformed in the past month alongside the broader regional gaming sector, reflecting sustained acceleration in gross gaming revenue and risk-on investor sentiment.

Stifel sees a potential path to $24 per share at current brick-and-mortar multiples, with improving visibility to a potential Interactive strategy shift and approximately $1 billion in growth project openings, though timing remains the key risk.

In other recent news, PENN Entertainment has completed a significant $233.5 million note repurchase, reducing its outstanding Convertible Senior Notes due in 2026 to approximately $106.7 million. This move is part of the company’s broader financial strategy, which includes a commitment to repurchase at least $350 million of shares in 2025. Additionally, JPMorgan has initiated coverage of PENN Entertainment with an overweight rating, citing the company’s upcoming $1 billion in new projects and its improving financial profile as key factors. The firm set a price target of $24.00, highlighting the potential for future growth. In governance news, PENN Entertainment’s shareholders elected Johnny Hartnett and Carlos Ruisanchez to the Board of Directors, reflecting ongoing shareholder engagement and a focus on digital and retail gaming expertise. The election results were influenced by HG Vora Capital Management, which successfully nominated the two directors amid calls for change. PENN’s recent actions, including the note repurchase and board changes, indicate a strategic focus on financial management and shareholder value. These developments are part of PENN Entertainment’s ongoing efforts to enhance its business operations and financial standing.

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