BofA Securities Starts PENN Entertainment Inc (PENN) at Neutral

BofA Securities analyst Shaun Kelley initiates coverage on PENN Entertainment Inc (NASDAQ: PENN) with a Neutral rating and a price target of $22.00.

The analyst comments "Q3 (see report) was in-line with PENN’s pre-announcement (see report). Q4 guidance implies regional revenue flat and EBITDA -6% Y/Y, in-line with our estimates. For 2025, we are -3% on core regional EBITDA $80M below Street) owing to further supply and margin pressure, and we expect an online loss of $146M, improved from 2024’s $470M but also $80M below the Street on lower share/higher fixed costs. Valuation: PENN trades at 7x EBITDAR and a 10.8% FCF yield (tax adj.) vs. a LT average of 7.5x and the peer avg. of 10.7% resp. We note every 1x EBITDAR on PENN is +/- 55% to the stock."

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 $21.54 yesterday.

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