Penn Entertainment Nearing Inflection Point After Years of Ongoing Challenges -- Market Talk

Dow Jones
2025/06/26

0950 ET - Penn Entertainment has faced headwinds for years as it's been building its online business, but it's nearing an inflection point, Citizens' Jordan Bender and Eric Ross say in a research note. The gambling company has overpromised and underdelivered, say the analysts, "leading to a bloated cost structure and balance sheet." But several catalysts are near, including casino openings/growth and shareholder returns that should bridge the company into 2026. They add that the digital business can turn into a call option for value. "The stock is down 87% from its all-time high, yet we are nearing an inflection point in the story whereby we see 38% upside in shares," say the analysts, who upgrade the stock to market outperform from market perform and introduce a $24 price target. Penn Entertainment rises 2.8% to $17.88. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

June 26, 2025 09:50 ET (13:50 GMT)

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