Wednesday, August 09, 2023 5:40:36 PM
12:26 pm ET August 9, 2023 (CFRA)
We maintain our 12-month price target of $44, based on 6.8x our EBITDA estimate, below the company's 10-year average forward EV/EBITDA multiple of 8.4x but more in line with its pre-pandemic multiple. We maintain our 2023 and 2024 EPS estimates of $1.75 and $2.00, respectively. PENN posts normalized Q2 EPS of $0.48 vs. $0.15, $0.09 above consensus estimates on revenues of $1.67B vs. $1.63B and $11M above estimates. By segment, Northeast revenues were flat Y/Y, South declined 9%, West declined 15%, Midwest declined 1%, and Interactive grew 66%. PENN announced it is partnering with ESPN to rebrand barstool sports online sportsbook to ESPN Bet for $1.5B over 10 years and $500M in warrants up front with additional performance warrants based on market share gains. We believe the deal can bring the newly branded OSB into the top 3 in market share across the U.S. and Canada over the next five years. PENN will leverage ESPN to acquire new customers and we expect significant market share gains. We see value in shares.
Recent PENN News
- PENN Entertainment Publishes 2023 Corporate Social Responsibility Report • Business Wire • 04/23/2024 08:12:00 PM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- PENN Entertainment Names Aaron LaBerge Chief Technology Officer • Business Wire • 04/22/2024 06:00:00 PM
- PENN Entertainment to Report First Quarter Results and Host Conference Call and Webcast on May 2 • Business Wire • 04/02/2024 02:00:00 PM
- ESPN BET Launches in North Carolina • Business Wire • 03/11/2024 06:25:00 PM
- PENN Entertainment to Participate in J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum on March 14 • Business Wire • 03/07/2024 07:38:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:59:47 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:46:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:36:44 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/22/2024 02:01:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 12:00:40 PM
- PENN Entertainment Reports Fourth Quarter Results • Business Wire • 02/15/2024 12:00:00 PM
- U.S. Futures Edge Higher Ahead of Key Economic Data Release, Oil Prices See Modest Declines • IH Market News • 02/15/2024 11:35:32 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 03:44:49 PM
- PENN Entertainment Announces Agreement with Wynn Interactive Holdings to Acquire Mobile Sports Wagering Licenses for New York Market Access • Business Wire • 02/13/2024 03:00:00 PM
- PENN Entertainment Announces Interactive Leadership Transition Scheduled for April 2024 • Business Wire • 01/31/2024 09:45:00 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 01/16/2024 04:00:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:47 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 09:47:37 PM
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