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Investing.com - Stifel maintained its Hold rating and $19.00 price target on Penn Entertainment Inc (NASDAQ:PENN), a $2.4 billion market cap casino operator, following a tour of the company’s new land-based casinos in Illinois. According to InvestingPro data, the stock is currently trading near its Fair Value.
The investment firm visited Penn’s recently opened Hollywood Joliet location, which launched on August 11, and received information about the upcoming Aurora casino scheduled to open in the first half of 2026.
Stifel expressed confidence in its projection of mid-teens percentage cash-on-cash returns for the two projects, noting these returns may not be fully reflected in fiscal year 2026 consensus estimates.
The firm cited "significantly improved product and location" alongside typical operational and capital expenditure savings from transitioning from riverboat to land-based facilities as supporting factors for the projects’ feasibility, though it cautioned that market saturation and high competitor promotions could limit upside potential.
While Stifel sees an "increasingly attractive setup" for Penn Entertainment with improving retail same-store cash flows and potential catalysts beginning in late 2025, it remains cautious due to macroeconomic uncertainty, maintaining its Hold recommendation with no changes to its $19 target price.
In other recent news, PENN Entertainment reported its second-quarter 2025 financial results, which revealed a mixed performance. The company achieved revenue of $1.77 billion, surpassing the consensus estimate of $1.73 billion. Earnings per share also exceeded expectations, with a reported $0.10 compared to the anticipated loss of $0.02. However, the adjusted EBITDAR was slightly below projections, coming in at $392.1 million against the expected $392.8 million. Benchmark maintained its Hold rating on PENN Entertainment, reflecting on these mixed results. Meanwhile, Needham adjusted its price target for the company to $22 from $25, citing weaker-than-expected interactive handle trends. Conversely, JMP Securities raised its price target to $25 from $24, maintaining a Market Outperform rating, acknowledging the revenue beat and aligned EBITDAR. These updates provide investors with a comprehensive view of the company’s recent performance and analyst perspectives.
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