Penn Entertainment Stock Surges After Upgrade From JPMorgan, Anticipating Growth

Investopedia

13 Dec 2024

Key Takeaways

Penn Entertainment shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off.
The analysts boosted their rating for Penn to "overweight" from "neutral," and lifted their price target to $27 from $19.
Despite Friday's gains, Penn shares have lost nearly one-fifth of their value since the start of the year.

Penn Entertainment (PENN) shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off.

The firm boosted its rating for Penn to "overweight" from "neutral," and lifted its price target to $27 from $19, implying about 30% upside from Friday's intraday price of $20.81.

The analysts told clients they see Penn's investments in retail projects "beginning to bear fruit and ultimately generating attractive double-digit cash-on-cash returns" beginning in the second half of 2025 and into 2026.

They projected improving free cash flow because of land-based capital expenditures “dropping dramatically” in 2026, and Penn’s ability to deploy that free cash flow to “de-lever and reduce its not so burdensome cash interest expense.” They also cited the company's declining interactive gambling losses.

Shares of Penn rose 4% in early trading Friday, though despite Friday's gains, they've lost nearly one-fifth of their value since the start of the year.

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2491630331"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2491630331\",edition:\"fundamental\",,,undefined,":{"share":"https://ttm.financial/m/news/2491630331?lang=en_US&edition=fundamental","thumbnail":"https://www.investopedia.com/thmb/I6K4rgYgIYWuCWLCLArQmEAaBzQ=/7243x4829/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2186076611-abb22d29282c4573bfa4f335de1b1d40.jpg","is_english":true,"pubTime":"2024-12-13 23:57","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2491630331","market":"us","top_or_hot":-1,"title":"Penn Entertainment Stock Surges After Upgrade From JPMorgan, Anticipating Growth","media":"Investopedia","content":"<html><body><div><div><div><h3>Key Takeaways</h3>\n<div><ul><li>Penn Entertainment shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off. </li><li>The analysts boosted their rating for Penn to \"overweight\" from \"neutral,\" and lifted their price target to $27 from $19.</li><li>Despite Friday's gains, Penn shares have lost nearly one-fifth of their value since the start of the year. </li></ul></div></div></div>\n<p> Penn Entertainment (PENN) shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off.\n</p>\n<div></div>\n<p> The firm boosted its rating for Penn to \"overweight\" from \"neutral,\" and lifted its price target to $27 from $19, implying about 30% upside from Friday's intraday price of $20.81.<span></span>\n</p>\n<div></div>\n<p> The analysts told clients they see Penn's investments in retail projects \"beginning to bear fruit and ultimately generating attractive double-digit cash-on-cash returns\" beginning in the second half of 2025 and into 2026.\n</p>\n<div></div>\n<p> They projected improving free cash flow because of land-based capital expenditures “dropping dramatically” in 2026, and Penn’s ability to deploy that free cash flow to “de-lever and reduce its not so burdensome cash interest expense.” They also cited the company's declining interactive gambling losses.\n</p>\n<div></div>\n<p> Shares of Penn rose 4% in early trading Friday, though despite Friday's gains, they've lost nearly one-fifth of their value since the start of the year.\n</p>\n<div></div>\n<figure> <div>\n<div>\n<img height=\"1080\" width=\"1612\"/>\n<noscript>\n<img height=\"1080\" sizes=\"750px\" src=\"https://www.investopedia.com/thmb/t8iOgeGR_IzK872rH3_YyTbCthk=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/PENN_2024-12-13_07-50-13-6047f2b834e0462dba2d80a6fd5dd3a3.png\" srcset=\"https://www.investopedia.com/thmb/CWbKrP6t3ogY4hTx9D6aVJHQLyk=/750x0/filters:no_upscale():max_bytes(150000):strip_icc()/PENN_2024-12-13_07-50-13-6047f2b834e0462dba2d80a6fd5dd3a3.png 750w\" width=\"1612\"/>\n</noscript>\n</div> </div>\n<figcaption> <span><p>TradingView</p></span>\n</figcaption></figure>\n<div><div>Do you have a news tip for Investopedia reporters? 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The analysts boosted their rating ...</p>\n<a href=\"https://www.investopedia.com/penn-entertainment-stock-surges-after-upgrade-from-jpmorgan-anticipating-growth-8761021\">Source Link</a>\n</div>\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PENN","symbol_name":"佩恩国民博彩","start_time":0,"source_url":"https://www.investopedia.com/penn-entertainment-stock-surges-after-upgrade-from-jpmorgan-anticipating-growth-8761021","article_id":"2491630331","we_media_id":null,"thumbnails":["https://www.investopedia.com/thmb/I6K4rgYgIYWuCWLCLArQmEAaBzQ=/7243x4829/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2186076611-abb22d29282c4573bfa4f335de1b1d40.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491630331","pubTimestamp":1734105452,"columns":[],"sourceInfo":{"source_id":"investopedia_highlight","name":"Investopedia"},"weMediaInfo":null,"summary":"Penn Entertainment shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off. The analysts boosted their rating for Penn to \"overweight\" from \"neutral,\" and lifted their price target to $27 from $19.Despite Friday's gains, Penn shares have lost nearly one-fifth of their value since the start of the year.Penn Entertainment  shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off.The firm boosted its rating for Penn to \"overweight\" from \"neutral,\" and lifted its price target to $27 from $19, implying about 30% upside from Friday's intraday price of $20.81.The analysts told clients they see Penn's investments in retail projects \"beginning to bear fruit and ultimately generating attractive double-digit cash-on-cash returns\" beginning in the second half of 2025 and into 2026.Shares of Penn rose 4% in early trading Friday, though despite Friday's g","collect":0,"end_time":0,"defaultTopTitle":"investopedia.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"PENN":"佩恩国民博彩"},"translate_title":"摩根大通上调评级后，宾夕法尼亚娱乐股价飙升，预计将增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PENN":1},"content_text":"Key Takeaways\nPenn Entertainment shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off. The analysts boosted their rating for Penn to \"overweight\" from \"neutral,\" and lifted their price target to $27 from $19.Despite Friday's gains, Penn shares have lost nearly one-fifth of their value since the start of the year. \n Penn Entertainment (PENN) shares surged Friday after JPMorgan upgraded the casino operator's stock, anticipating growth as its investments begin to pay off.\n\n\n The firm boosted its rating for Penn to \"overweight\" from \"neutral,\" and lifted its price target to $27 from $19, implying about 30% upside from Friday's intraday price of $20.81.\n\n\n The analysts told clients they see Penn's investments in retail projects \"beginning to bear fruit and ultimately generating attractive double-digit cash-on-cash returns\" beginning in the second half of 2025 and into 2026.\n\n\n They projected improving free cash flow because of land-based capital expenditures “dropping dramatically” in 2026, and Penn’s ability to deploy that free cash flow to “de-lever and reduce its not so burdensome cash interest expense.” They also cited the company's declining interactive gambling losses.\n\n\n Shares of Penn rose 4% in early trading Friday, though despite Friday's gains, they've lost nearly one-fifth of their value since the start of the year.\n\n\n \n\n\n\n\n\n \n TradingView\n\nDo you have a news tip for Investopedia reporters? 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