The Bank of America analyst, Shaun Kelley, has adjusted the firm's price target for Penn Entertainment (PENN, Financial), reducing it from $22 to $18 while maintaining a Neutral rating on the company's shares. This adjustment is part of a broader outlook concerning the gaming sector as it enters the first quarter.
The firm anticipates that the gaming sector in Macau will perform below expectations, projecting figures 5% lower than the consensus due to ongoing geopolitical tensions between the U.S. and China. While there have not yet been signs of a slowdown in Las Vegas, analysts emphasize that investors will closely monitor trends in visitor numbers, bookings, cancellations, and consumer behavior through the end of March and into April.
Regionally, gaming visitation has shown resilience, with a noticeable uptick in March attributed to favorable weather conditions. Despite these trends, BofA has adjusted its gaming EBITDA estimates for 2025, now positioning them 2% below market averages, reflecting caution regarding consumer confidence and the broader economic environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for PENN Entertainment Inc (PENN, Financial) is $23.41 with a high estimate of $30.00 and a low estimate of $17.50. The average target implies an upside of 63.11% from the current price of $14.35. More detailed estimate data can be found on the PENN Entertainment Inc (PENN) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, PENN Entertainment Inc's (PENN, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PENN Entertainment Inc (PENN, Financial) in one year is $30.02, suggesting a upside of 109.2% from the current price of $14.3501. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PENN Entertainment Inc (PENN) Summary page.
