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Truist ups Penn National Gaming shares target on improved land-based revenue

EditorEmilio Ghigini
Published 2024-06-14, 10:02 a/m
PENN
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On Friday, Truist Securities updated its outlook on Penn National Gaming (NASDAQ:PENN) shares, increasing the price target to $25 from $23 while maintaining a Buy rating on the stock. The adjustment follows a positive assessment of the company's recent performance and management commentary.

Penn National Gaming's land-based Gross Gaming Revenue (GGR) has shown an upward trend, with a notable improvement observed from April to May. This uptick is attributed to calendar effects rather than fundamental changes in the business.

While June figures are not yet clear, Truist Securities has slightly lowered its second-quarter EBITDAR estimates by 1% as a cautionary measure. However, the full-year 2024 forecasts remain unchanged, aligning with the midpoint of the company's guidance.

The firm's confidence in Penn National Gaming is further bolstered by stable projections for the company's Interactive segment. The revised price target of $25 reflects a valuation of approximately 6.5 times the estimated 2025 Retail EBITDAR, in addition to an additional $7 attributed to the company's other Interactive business ventures.

Truist Securities' stance on Penn National Gaming is supported by recent data and interactions with the company's management. The positive sentiment reflects an anticipation of continued growth and stability in the gaming operator's financial performance in the coming years.

In other recent news, Penn National Gaming has been in the spotlight following a series of analyst reports. Stifel maintained its Hold rating and $19.00 stock price target for the company, acknowledging ongoing investor concerns about the company's increasing losses in its Interactive segment.

Similarly, Raymond James initiated coverage on the company with an Outperform rating and a price target of $20.00, citing underperformance in its digital segment and issues within its land-based operations.

On the other hand, Needham maintained its Buy rating and a $26.00 price target for Penn National Gaming, buoyed by the company's collaboration with ESPN and technological strides.

However, BofA Securities downgraded the company from Buy to Neutral and reduced the price target to $17.50 following the company's first-quarter results, which did not meet expectations.

Additionally, CFRA analyst Zachary Warring adjusted the price target for the company, raising it to $24.00 from the previous $16.00, reflecting a valuation pegged at 5.9 times the firm's 2024 EBITDA estimate.

These are recent developments that highlight the varied perspectives of different analyst firms on the company's potential performance. The company's earnings, revenue results, and analyst upgrades or downgrades are crucial for investors to consider.

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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