Shares of Penn National Gaming (NASDAQ:PENN) climbed 7.6% on Thursday, after analyst commentary that is positive.
Stifel analyst Steven Wieczynski reiterated his purchase rating on Penn’s stocks and boosted his price forecast from $47 to $85. His target that is brand new represents gains for investors of roughly 16% from the stock’s current price near $73.
Wieczynski expects recreations betting to heat up as the nationwide Football League period progresses. Penn purchased a 36% stake in online sports publisher Barstool Sports in January for $163 million, and it recently established a barstool-branded wagering app that is mobile. Thanks in part to Barstool’s massive group of fans, Wieczynski and other analysts expect Penn’s brand new software to quickly turn into a leader in the online sports market that is betting rivals DraftKings and FanDuel.
Looking further ahead, Wieczynski expects more states to legalize sports betting as a means to recoup income lost throughout the current coronavirus-related downturn that is economic.
“Given the ongoing pandemic and the truth states that are many hurting for tax bucks, we believe there could be up to 10 states that could fast-track or formally pass sports legislation that is betting/iGaming this November,” he said. The recent commencement of sports-news software Barstool Sportsbook in addition with other betting announcements should allow the shares to keep surfing the “sports betting euphoria wave,” he said as for Wieczynski.
Though valuations are hefty compared to averages that are historical Penn Gaming now represents a” that is“story, and which means sentiment is more important than valuation, Wieczynski said.
Penn sports a price-to-book-value multiple of 31.41, compared along with its average that is five-year of, according to Morningstar. Last week, Rosenblatt initiated coverage of Penn National with a buy and the one thing which was then the Wall Street cost that is high of $80 a share.
The investment company is bullish on Penn’s acquisition of a 36% interest in Barstool Sports as well as on the Wyomissing, Pa., business’s burgeoning sports business that is wagering.
“If PENN can leverage Barstool’s brand having a best-in-class and app that is differentiated … there is possibility of PENN to be the market leader,” analyst Bernie McTernan said.
Coronavirus Market Update: register for TheStreet’s Coronavirus Market Update newsletter and get the market headlines which are latest brought to your inbox daily. Shares of Penn National Gaming (NASDAQ:PENN) climbed 7.6%.