Wells Fargo Reiterates Equal Weight Rating on PENN Entertainment Inc (PENN)

Wells Fargo analyst Daniel Politzer reiterated an Equal Weight rating and $18.00 price target on PENN Entertainment Inc (NASDAQ: PENN)

The analyst comments "Our Thoughts. Mgmt. did a solid job highlighting the company’s strategy and opportunities, but we view PENN more as a show-me story, esp. re: ESPN BET being able to gain/maintain adequate scale/share to compete w/ larger, and potentially more promotional, competitors. Product/technology is critical (ESPN has come a long way in a short time), but to us, the integration with ESPN will be pivotal, specifically on the ESPN account linking (near term) and integration w/ ESPN’s DTC (medium term). PENN laid out its vision for ESPN BET and broader company strategy, w/ emphasis on how it’s well positioned to benefit from its omni-channel offering. ESPN BET continues to evolve/improve, w/ highlight improving/higher hold (Sept 2024: 9.1%) driven by the casual “everyday” bettor who likes parlays (27.5% of Sept. handle). ESPN BET should be breakeven in ’25 and materially profitable in ’26, w/ key/upcoming milestones including ESPN acct linking (~Nov/Dec) and ESPN’s DTC rollout in Summer ‘25."

For an analyst ratings summary and ratings history on PENN Entertainment Inc click here. For more ratings news on PENN Entertainment Inc click here.

Shares of PENN Entertainment Inc closed at $18.57 yesterday.

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