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

Key Points

• Stifel Nicolaus raised its price target on PENN from $22 to $23 and kept a "buy" rating, implying roughly a 33% upside from the prior close.
• PENN beat Q1 estimates with $0.11 EPS versus a $0.05 consensus and $1.78B in revenue, citing property improvements (e.g., the M Resort tower) and retail/online gains as drivers of year‑over‑year revenue growth.
• Downside risks remain as the company carries high leverage and negative profitability metrics, and it forecasted an about $20M interactive adjusted EBITDA loss in 2026 tied to its Alberta launch.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its price objective boosted by stock analysts at Stifel Nicolaus from $22.00 to $23.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Stifel Nicolaus' target price would suggest a potential upside of 33.29% from the stock's previous close.

Several other brokerages have also issued reports on PENN. Susquehanna dropped their target price on PENN Entertainment from $20.00 to $17.00 and set a "positive" rating for the company in a research report on Wednesday, February 11th. Deutsche Bank Aktiengesellschaft increased their price target on PENN Entertainment from $16.00 to $17.00 and gave the stock a "hold" rating in a report on Friday, February 27th. JPMorgan Chase & Co. boosted their price objective on PENN Entertainment from $21.00 to $22.00 and gave the company an "overweight" rating in a report on Thursday, April 16th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of PENN Entertainment in a research report on Friday, March 27th. Finally, Citigroup increased their target price on PENN Entertainment from $15.00 to $16.00 and gave the stock a "neutral" rating in a research note on Monday, March 2nd. Eight equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $20.07.

PENN Entertainment Price Performance

NASDAQ:PENN opened at $17.26 on Friday. The business's 50-day simple moving average is $14.48 and its two-hundred day simple moving average is $14.74. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $20.60. The stock has a market cap of $2.30 billion, a PE ratio of -2.87, a P/E/G ratio of 0.48 and a beta of 1.32. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.92.

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

Institutional Trading of PENN Entertainment

Several institutional investors and hedge funds have recently modified their holdings of PENN. Shapiro Capital Management LLC boosted its holdings in shares of PENN Entertainment by 6.6% in the third quarter. Shapiro Capital Management LLC now owns 6,856,778 shares of the company's stock valued at $132,062,000 after purchasing an additional 425,190 shares during the period. Hill Path Capital LP increased its holdings in PENN Entertainment by 64.4% during the 3rd quarter. Hill Path Capital LP now owns 5,759,820 shares of the company's stock worth $110,934,000 after purchasing an additional 2,257,000 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in PENN Entertainment by 74.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,930,293 shares of the company's stock worth $75,697,000 after purchasing an additional 1,679,953 shares during the period. AQR Capital Management LLC raised its position in PENN Entertainment by 824.3% during the 4th quarter. AQR Capital Management LLC now owns 3,499,700 shares of the company's stock valued at $51,341,000 after purchasing an additional 3,121,051 shares in the last quarter. Finally, Armistice Capital LLC lifted its holdings in shares of PENN Entertainment by 47.2% in the 4th quarter. Armistice Capital LLC now owns 3,096,000 shares of the company's stock worth $45,666,000 after buying an additional 992,334 shares during the period. Institutional investors own 91.69% of the company's stock.

Key Stories Impacting PENN Entertainment

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

• Positive Sentiment: Q1 beat on both EPS and revenue — PENN reported $0.11 EPS vs. $0.05 consensus and roughly $1.78B in revenue (above estimates), demonstrating a recovery vs. the prior year and supporting the bullish reaction. Read More.
• Positive Sentiment: Property improvements are lifting visitation and spend — the December opening of the new M Resort tower drove higher visitation and helped Q1 results, underscoring the impact of capital projects on operating performance. Read More.
• Positive Sentiment: Retail and online positioning gains are translating into YoY revenue growth — brand changes online plus retail spikes were highlighted as drivers of the quarter’s revenue increase. Read More.
• Neutral Sentiment: Management commentary and the full earnings‑call transcript provide more color on operating trends and timing for retail/interactive growth; investors should watch the slide deck and guidance details for assumptions behind the retail midpoint and Alberta launch. Read More.
• Neutral Sentiment: Some headlines framed results differently (e.g., “tops EPS despite revenue shortfall”), reflecting differences in which benchmarks (street estimates vs. company guidance or seasonal comps) outlets emphasize — expect mixed interpretations in near‑term trading. Read More.
• Negative Sentiment: Guidance flag: PENN forecasted a 2026 interactive adjusted EBITDA loss of about $20M as it ramps the Alberta launch — this near‑term EBITDA drag and investment in interactive could pressure margins and investor sentiment. Read More.
• Negative Sentiment: Balance‑sheet and profitability metrics remain a caution — PENN carries relatively high leverage and reported negative net margin/ROE, which could amplify downside if macro or visitation trends weaken.

PENN Entertainment Company Profile

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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