Privately held trading and technology firm Susquehanna boosted its rating on Penn National Gaming stock to Positive from Neutral this week.
PENN has been described as a stock with a steady regional land-based casino portfolio whose most sensitive value driver is linked to the success of its emerging digital offering. It operates 44 facilities in the United States and Canada, many of them under the Hollywood Casino brand.
PENN observed a deep contraction in Q4 of 2021 along with its competitors, due to concerns of high competitive rivalry, and the Omicron variant disrupting sporting events. Analysts predict that PENN stock has a 59% chance of a rise during the next 21 trading days.
Moving forward, Susquehanna thinks PENN’s digital efforts can inflect positively on the back of new market penetrations, important integration milestones in Q3 and on the competitive landscape a view that Caesars Entertainment is likely to lower its digital investments.
Susquehanna notes a price target of $65 to rep more than 30% upside potential. Shares of Penn National Gaming gained 3.30% in premarket trading to $49.70.
In recent months, sports and pop-culture blog Barstool Sports, which PENN owns a 36% stake in has been hit with more controversy. Business Insider published a second hit piece about the leadership at Barstool, which was published just hours before the company reported quarterly earnings.
PENN CEO believes the timing of both hit pieces is suspicious.