{"id":176460,"date":"2021-06-15T10:54:33","date_gmt":"2021-06-15T17:54:33","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=176460"},"modified":"2021-06-15T18:21:14","modified_gmt":"2021-06-16T01:21:14","slug":"penn-stock-can-rebound-from-its-malaise-says-stifel-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/","title":{"rendered":"Penn National Stock Margin Story Not Fully Appreciated, Says Analyst"},"content":{"rendered":"

Off 44 percent from its March high, Penn National Gaming (NASDAQ:PENN) stock may still hold cards for upside, and there are some elements to the story that aren’t fully appreciated, according to one Wall Street analyst.<\/p>\n

\"Penn
The Barstool Sportsbook at the Greektown Casino in Detroit, pictured above. Penn National stock can rally anew, says an analyst. (Image: Reddit)<\/figcaption><\/figure>\n

In a note to clients, Stifel analyst Steven Wieczynski reiterates a \u201cbuy\u201d rating on the regional casino operator, with a price target of $108. That implies upside of about 33 percent from the June 14 close. The previously scorching hot<\/a> gaming equity hasn’t closed above $100 since April. Over the near term, the point to ponder with Penn and other regional gaming names is how sustainable recent visitation surges will prove to be.<\/p>\n

Volumes have remained robust since March, with no signs of faltering yet,\u201d said Wieczynski. \u201cThe question remains how long can this last, as competitive entertainment re-opens and stimulus\/savings unwinds.\u201d<\/span><\/p><\/blockquote>\n

The analyst says there’s remaining traffic upside for the Ameristar operator as older gamblers, including those in the 65+ demographic, become more comfortable with revisiting gaming venues. He adds that even if there’s a tapering of visitation over time as visitation normalizes, Penn’s baseline for visitation should exceed the pre-pandemic levels seen in 2019.<\/span><\/p>\n

Penn Stock Has Advantages<\/span><\/h2>\n

With the stock down almost 41 percent over just the past 90 days, it’d be easy to dismiss Penn. But that could be a mistake, as the company has advantages over competing operators.<\/span><\/p>\n

\n

For example, its portfolio is deep in number<\/a>, including 42 casinos, and geography, covering 20 states. Additionally, it’s diverse, as none of Penn’s individual casinos account for more than 15 percent of overall revenue. That tethers the operator to the more even recovery by regional casinos, while avoiding some of the bumps associated with rebounds in destination markets. With the pending closure of the Tropicana on the Las Vegas Strip, Penn will operate just two venues in Southern Nevada, both of which are more tied to locals and tourists.<\/span><\/p>\n<\/div>\n

\u201cWe thinks this helps de-risk concerns on select regions with heightened restrictions, or other COVID-19 related drivers of underperformance,\u201d said Wieczynski.<\/span><\/p>\n

The analyst adds Penn management’s ability to maintain lofty margins is a positive part of the equity thesis.<\/span><\/p>\n

\u201cOn the cost side, we think investors remain wary of assuming the market sustains more rational marketing\/promotional behavior,\u201d he adds. \u201cHowever, having covered this company for years, and witnessed PENN\u2019s unrelenting commitment to driving industry-leading tax-adjusted margins, we have confidence in management\u2019s ability to run this business at enhanced margins.\u201d<\/span><\/p>\n

Penn Has Online Perks, Too<\/span><\/h2>\n

While iGaming and sports wagering equities, Penn stock included, have come under substantial pressure<\/a> in recent months, Wieczynski believes the Pennsylvania-based operator has advantages over rivals, particularly on costs and brand loyalty.<\/span><\/p>\n

\u201cSpecifically, we believe many of PENN\u2019s peers continue to compete largely on marketing, which is costly and may not create \u201cstickiness\u201d or any real brand loyalty,\u201d said the analyst. \u201cPENN is differentiated here in their strategy, relying more on Barstool-integrated and player-targeted promotions\/bonuses.<\/span><\/p>\n

Adding up brick-and-mortar assets, revenue generated on non-primary skins, and a robust player database, and Wieczynski says Penn stock is \u201cvery much undervalued following the recent pullback.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Off 44 percent from its March high, Penn National Gaming (NASDAQ:PENN) stock may still hold cards for upside, and there are some elements to the story that aren’t fully appreciated, according to one Wall Street analyst. In a note to clients, Stifel analyst Steven Wieczynski reiterates a \u201cbuy\u201d rating on the regional casino operator, with […]<\/p>\n","protected":false},"author":46,"featured_media":176461,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nPenn Stock Can Rebound from its Malaise, Says Stifel Analyst<\/title>\n<meta name=\"description\" content=\"Penn stock buyable on recent weakness, could regain triple digits on regional strength, says analyst.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penn Stock Can Rebound from its Malaise, Says Stifel Analyst\" \/>\n<meta property=\"og:description\" content=\"Penn stock buyable on recent weakness, could regain triple digits on regional strength, says analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-15T17:54:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-16T01:21:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/bs-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/\",\"name\":\"Penn Stock Can Rebound from its Malaise, Says Stifel Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/bs-scaled.jpg\",\"datePublished\":\"2021-06-15T17:54:33+00:00\",\"dateModified\":\"2021-06-16T01:21:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Penn stock buyable on recent weakness, could regain triple digits on regional strength, says analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-stock-can-rebound-from-its-malaise-says-stifel-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/bs-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/bs-scaled.jpg\",\"width\":2560,\"height\":1440,\"caption\":\"The Barstool Sportsbook at the Greektown Casino in Detroit. 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