Professional
Added to YB: 2024-02-20
Pitch date: 2024-02-16
PENN [bullish]
PENN Entertainment, Inc.
-8.74%
current return
Author Info
No bio for this author
Company Info
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in the United States and internationally.
Market Cap
$2.0B
Pitch Price
$18.30
Price Target
27.00 (+62%)
Dividend
N/A
EV/EBITDA
7.87
P/E
-2.31
EV/Sales
1.77
Sector
Hotels, Restaurants and Leisure
Category
turnaround
PENN Entertainment, Inc.: Digital Business More Promotional Near Term, but Ramping Profits on the Horizon
PENN -14% on Q4 promo surge for betting & iGaming, but seen aiding long-term profits. Fair value cut to $27 on promo hit & rivalry. 20% EBITDA margin goal by 2030. Regional sales & interactive net sales dip, but 7% share kept post-promo norm. 43 casinos + digital/media for 10% of betting & iGaming mkt share by 2027, 38% of total sales. $1.3B debt due 2026-27 manageable w/ liquidity & FCF. Risks: no moat, debt, rivalry in low-barrier US gaming mkt.
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