PENN Entertainment (PENN) is expected to benefit from improving regional gaming trends and its new projects, including the new Hollywood Aurora property, Truist Securities said in a note Friday.

Management's expectation for the $360 million Aurora casino to generate a cash-on-cash return above 15% is in line with historical returns on PENN's projects, according to the note. Aurora is the last of the company's projects in the 2025 to 2026 period, after M, Joliet and Columbus.

Aurora is expected to contribute $53 million EBITDA once ramped, the brokerage said, adding that ramp timeline is "more efficient" than the Joliet property given the area's more developed infrastructure.

The brokerage said the $185 million Hollywood Joliet property, which opened in August 2025, saw monthly gross gaming revenue averaging about 1.6 times and foot traffic about 1.7 times that of the legacy riverboat casino. Truist said it expects further growth as the surrounding mixed-use development expands.

Truist Securities raised its price target on PENN to $25 from $20, and reiterated its buy rating.