Deutsche Bank's analyst Steven Pizzella noted that the recent decline in Penn Entertainment's stock, which has fallen approximately 29% over the past three months, is largely attributed to broader market fears rather than any significant deterioration in the company's fundamentals.
The bank raised its price target for the stock from $23 to $25, indicating a potential upside of about 66% from its recent closing price. Pizzella expects regional gaming trends to improve in the coming months, particularly as calendar-related headwinds from August, which included a negative impact of around 250 basis points due to one less Friday and the Labor Day shift, begin to reverse.
He highlighted that upcoming data on regional gaming trends could serve as a crucial catalyst for the stock's performance. This positive outlook aligns with the broader consensus among analysts, with 13 out of 21 covering Penn Entertainment rating it as a buy