Wells Fargo & Company Forecasts Strong Price Appreciation for PENN Entertainment (NASDAQ:PENN) Stock

Key Points

• Wells Fargo raised its PENN price target to $23 from $22 but maintained an “equal weight” rating; the new target implies 32.64% upside from the prior close.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $23.56.
• PENN reported quarterly earnings of $0.32 per share, beating the $0.17 estimate, while revenue rose 7.1% year over year to $1.84 billion, in line with expectations.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its target price lifted by analysts at Wells Fargo & Company from $22.00 to $23.00 in a research report issued on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 32.64% from the company's previous close.

Several other equities research analysts also recently issued reports on the company. Citizens Jmp upped their price target on PENN Entertainment from $24.00 to $26.00 and gave the stock a "market outperform" rating in a report on Thursday, July 16th. Susquehanna dropped their target price on shares of PENN Entertainment from $30.00 to $26.00 and set a "positive" rating on the stock in a research note on Monday, October 19th. Deutsche Bank Aktiengesellschaft raised shares of PENN Entertainment from a "hold" rating to a "buy" rating and increased their target price for the company from $23.00 to $25.00 in a research report on Tuesday, October 6th. JPMorgan Chase & Co. decreased their price target on shares of PENN Entertainment from $27.00 to $24.00 and set an "overweight" rating for the company in a research note on Tuesday, October 20th. Finally, Benchmark lifted their price target on shares of PENN Entertainment from $21.00 to $22.00 and gave the stock a "buy" rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $23.56.

PENN Entertainment Stock Performance

NASDAQ PENN opened at $17.34 on Friday. The company has a market cap of $2.32 billion, a P/E ratio of -2.73, a PEG ratio of 0.45 and a beta of 1.40. The company has a fifty day simple moving average of $16.01 and a 200 day simple moving average of $16.84. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 3.79. PENN Entertainment has a 12-month low of $11.65 and a 12-month high of $22.36.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.15. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The firm had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.84 billion. During the same quarter in the prior year, the company posted ($0.22) earnings per share. The business's revenue was up 7.1% on a year-over-year basis. Sell-side analysts predict that PENN Entertainment will post 1.20 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PENN Entertainment

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Eurizon Capital SGR S.p.A. bought a new position in shares of PENN Entertainment in the third quarter worth $25,000. Maryland State Retirement & Pension System boosted its stake in PENN Entertainment by 53.7% during the third quarter. Maryland State Retirement & Pension System now owns 28,510 shares of the company's stock valued at $418,000 after buying an additional 9,961 shares during the period. Jefferies Financial Group Inc. grew its position in PENN Entertainment by 132.9% during the third quarter. Jefferies Financial Group Inc. now owns 28,900 shares of the company's stock worth $423,000 after buying an additional 16,492 shares in the last quarter. Keybank National Association OH bought a new position in PENN Entertainment in the 3rd quarter worth about $200,000. Finally, StoneX Group Inc. bought a new position in PENN Entertainment in the 3rd quarter worth about $156,000. Institutional investors own 91.69% of the company's stock.

Key PENN Entertainment News

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: PENN reported Q3 earnings of $0.32 per share, above analyst estimates, compared with a loss a year earlier. Revenue rose 7.1% to $1.84 billion, broadly matching expectations. The earnings beat and return to profit are likely the clearest positive catalysts in the coverage. PENN Entertainment Swings to 3Q Profit as Sales Rise
• Positive Sentiment: Reports identify U.S. online casino operations and Canada as growth drivers, while management commentary points to a path toward digital profitability. Evidence of improving digital economics could strengthen the investment case for PENN’s online business. U.S. iCasino, Canada drive growth of Wyomissing-based PENN Entertainment
• Positive Sentiment: The second tower at M Resort continues to boost revenue, adding support from PENN’s regional casino and hotel operations. 2nd M Resort tower continues to boost revenue for Penn
• Neutral Sentiment: PENN is not prioritizing acquisitions, suggesting a focus on existing operations rather than deal-driven expansion. The effect depends on whether organic growth can deliver sufficient returns. Penn Entertainment Isn’t Prioritizing Acquisitions
• Neutral Sentiment: The company is expected to pursue a Texas gambling opportunity after the midterm elections, but any benefit depends on legislative and regulatory developments. Texas gambling push on tap for PENN Entertainment after midterm elections

About PENN Entertainment

PENN Entertainment, Inc is a North American provider of integrated entertainment, gaming and sports betting. The company operates casinos, racetracks and video gaming terminals, offering slot machines, table games, poker, sports wagering, hotel accommodations, restaurants, entertainment venues and other amenities.

PENN's portfolio includes regional gaming properties operating under brands such as Hollywood Casino, Ameristar, L'Auberge and M Resort. Its land-based operations serve customers across numerous U.S.

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