Mizuho Forecasts Strong Price Appreciation for PENN Entertainment (NASDAQ:PENN) Stock

Key Points

• Mizuho raised its price target on PENN from $22 to $23 and keeps an "outperform" rating, implying about a 36.8% upside versus the current share price.
• PENN beat Q1 estimates with EPS of $0.11 (vs. $0.05 est.) and revenue of $1.78B (vs. $1.74B est.), and management highlights narrowing interactive losses and expected cash generation from retail/physical projects supporting a turnaround thesis.
• Despite bullish analyst moves, the stock traded near $16.82 with a consensus target of $20.21 and an average "Hold" rating, while high leverage (debt-to-equity ~3.92) and negative margins represent material downside risks.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its price target raised by stock analysts at Mizuho from $22.00 to $23.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Mizuho's price target points to a potential upside of 36.78% from the company's current price.

A number of other analysts also recently issued reports on the company. JPMorgan Chase & Co. lifted their price target on PENN Entertainment from $22.00 to $23.00 and gave the stock an "overweight" rating in a report on Friday. Susquehanna reduced their target price on PENN Entertainment from $20.00 to $17.00 and set a "positive" rating for the company in a report on Wednesday, February 11th. Benchmark raised PENN Entertainment from a "hold" rating to a "buy" rating and set a $21.00 target price for the company in a report on Thursday, March 5th. Citigroup boosted their target price on PENN Entertainment from $15.00 to $16.00 and gave the company a "neutral" rating in a report on Monday, March 2nd. Finally, Stifel Nicolaus boosted their target price on PENN Entertainment from $22.00 to $23.00 and gave the company a "buy" rating in a report on Friday. Eight research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, PENN Entertainment currently has an average rating of "Hold" and a consensus target price of $20.21.

PENN Entertainment Stock Down 2.6%

NASDAQ PENN traded down $0.45 during trading on Friday, reaching $16.82. 4,825,516 shares of the company's stock were exchanged, compared to its average volume of 4,430,839. The stock has a market cap of $2.25 billion, a P/E ratio of -2.79, a price-to-earnings-growth ratio of 0.48 and a beta of 1.32. The company has a debt-to-equity ratio of 3.92, a quick ratio of 0.79 and a current ratio of 0.79. The company has a 50 day moving average price of $14.48 and a two-hundred day moving average price of $14.74. PENN Entertainment has a 1 year low of $11.65 and a 1 year high of $20.60.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.06. The company had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.74 billion. PENN Entertainment had a negative return on equity of 1.94% and a negative net margin of 12.11%.PENN Entertainment's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.68 EPS. On average, equities research analysts anticipate that PENN Entertainment will post 1.01 EPS for the current fiscal year.

Hedge Funds Weigh In On PENN Entertainment

Several large investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its holdings in shares of PENN Entertainment by 824.3% during the fourth quarter. AQR Capital Management LLC now owns 3,499,700 shares of the company's stock valued at $51,341,000 after buying an additional 3,121,051 shares during the last quarter. Hill Path Capital LP increased its stake in shares of PENN Entertainment by 64.4% during the third quarter. Hill Path Capital LP now owns 5,759,820 shares of the company's stock valued at $110,934,000 after acquiring an additional 2,257,000 shares during the period. Hennessy Advisors Inc. acquired a new position in shares of PENN Entertainment during the third quarter valued at approximately $40,537,000. Arrowstreet Capital Limited Partnership increased its stake in shares of PENN Entertainment by 74.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,930,293 shares of the company's stock valued at $75,697,000 after acquiring an additional 1,679,953 shares during the period. Finally, Kettle Hill Capital Management LLC increased its stake in shares of PENN Entertainment by 129.5% during the fourth quarter. Kettle Hill Capital Management LLC now owns 1,773,390 shares of the company's stock valued at $26,158,000 after acquiring an additional 1,000,830 shares during the period. Institutional investors own 91.69% of the company's stock.

Key Headlines Impacting PENN Entertainment

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

• Positive Sentiment: JPMorgan raised its price target to $23 and reiterated an "overweight" rating, signaling significant upside versus the current stock level and giving investors a bullish institutional stamp. JPMorgan PT Raise
• Positive Sentiment: Stifel bumped its target to $23 and maintained a "buy" rating, aligning with other buy-side upgrades that support further upside expectations. Stifel PT RaiseThe Fly Coverage
• Positive Sentiment: Q1 results beat expectations: EPS $0.11 vs. $0.05 est. and revenue $1.78B vs. $1.74B est.; Interactive losses materially narrowed and management expects retail/physical projects (e.g., M Resort tower) to add meaningful cash flows — factors supporting improved near-term cash generation. Q1 Results
• Positive Sentiment: Analysts and writeups highlighting an operational inflection (interactive losses narrowing from -$89M to -$10M YoY) are painting PENN as a turnaround play if management sustains improvement and converts projects into cash returns. Seeking Alpha Bull Case
• Neutral Sentiment: Deutsche Bank raised its target modestly to $18 but kept a "hold" rating — a cautious upgrade that signals measured confidence but not a clear buy signal. Deutsche Bank Note
• Neutral Sentiment: PENN projects 2026 Interactive adjusted EBITDA loss of about $20M while anticipating Alberta launch and retail upside that lifts midpoints — a mixed outlook: progress, but not yet fully accretive. 2026 Interactive Forecast
• Negative Sentiment: Critics warn leverage and valuation remain key risks — PENN carries high net leverage (notably elevated debt-to-equity) and trades at a material EV/EBITDA premium to regional peers, which could limit upside until leverage meaningfully declines. Seeking Alpha Bear Case

About PENN Entertainment

PENN Entertainment, Inc NASDAQ: PENN is a leading operator of gaming and racing facilities in the United States. The company's business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company's portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.

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