Key Takeaways From PENN Entertainment Analyst Ratings

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on PENN Entertainment PENN in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $27.5, a high estimate of $33.00, and a low estimate of $21.00. A decline of 5.17% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of PENN Entertainment's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PENN Entertainment. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PENN Entertainment compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of PENN Entertainment's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of PENN Entertainment's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on PENN Entertainment analyst ratings.

Delving into PENN Entertainment's Background

Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 90% of total sales in 2022 (10% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates high-30% EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.

Understanding the Numbers: PENN Entertainment's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: PENN Entertainment's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -12.0%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -25.66%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): PENN Entertainment's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -10.71%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): PENN Entertainment's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.22%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: PENN Entertainment's debt-to-equity ratio is below the industry average. With a ratio of 3.6, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.