Skip to main content

Market Overview

4 Reasons To Like Penn National: Cost Savings, Sports Betting Margins And More

4 Reasons To Like Penn National: Cost Savings, Sports Betting Margins And More

Ahead of the rollout of Barstool Sportsbook in Michigan, this casino gaming stock just got a new bullish initiation.

The Penn National Analyst: Credit Suisse analyst Benjamin Chaiken initiates Penn National Gaming (NASDAQ: PENN) with an Outperform rating and $128 price target.

The Penn National Takeaways: Chaiken highlights four key reasons for the bullish rating:

  • Upside from pandemic-related savings and recent acquisitions as the topline returns.
  • Upside to targeted cost savings.
  • Better than expected margins in sports betting.
  • The company’s potential leadership in iGaming.

“We see meaningful opportunities for cost savings from the Pinnacle Entertainment acquisition,” Chaiken wrote in a note. Penn anticipated $120 million in cost synergies from the acquisition.

Related Link: Barstool Sportsbook Inks Deals With Nickmerc, Logan Paul Ahead Of Michigan Launch

The sports betting and iGaming opportunity is another reason for the bullishness from Chaiken.

“We think Penn/Barstool are uniquely positioned to operate their OSB business at higher margins than other operators than other operators," said Chaiken

Penn has a different cost profile as a casino operator with more than 40 properties and the unique ownership structure of Barstool Sports, Chaiken said. The company also has over 20 million Mychoice loyalty members and a dominant physical casino footprint that could help it be a leader in iGaming.

PENN Price Action: Shares of Penn National Gaming are up 6% to $106.43 at publication time.

Latest Ratings for PENN

Feb 2021JP MorganMaintainsOverweight
Feb 2021RosenblattMaintainsBuy
Feb 2021Truist SecuritiesMaintainsBuy

View More Analyst Ratings for PENN
View the Latest Analyst Ratings


Related Articles (PENN)

View Comments and Join the Discussion!

Posted-In: Barstool Sports Barstool Sportsbook Benjamin Chaiken Credit SuisseAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

VORStifelInitiates Coverage On58.0
VORGoldman SachsInitiates Coverage On19.0
TERNJP MorganInitiates Coverage On32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at