{"id":216839,"date":"2022-06-10T14:18:45","date_gmt":"2022-06-10T21:18:45","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=216839"},"modified":"2022-06-10T14:28:52","modified_gmt":"2022-06-10T21:28:52","slug":"penn-national-stock-is-slumping-but-has-positive-catalysts","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/","title":{"rendered":"Penn National Casino Spending Resilient, Digital Premium Gone, Says Analyst"},"content":{"rendered":"

Penn National Gaming\u2019s (NASDAQ:PENN) land-based casinos remain sturdy. But investors are no longer assigning a premium to the operator\u2019s digital business, which includes Barstool Sportsbook.<\/p>\n

\"Penn
Penn National’s Ameristar Casino in Colorado. An analyst is bullish on the stock. (Image: FlyerTalk<\/em>)<\/figcaption><\/figure>\n

However, resilient spending among patrons frequenting regional casinos isn\u2019t satisfying market participants, as highlighted by Penn\u2019s 40% year-to-date decline. In a new note to clients, Stifel analyst Steven Wieczynski points out investors have \u201calmost completely written off\u201d Penn amid dour economic expectations.<\/p>\n

At this point, we believe investors are pricing in not only a meaningful slowdown in the regional gaming consumer, but also effectively zero credit for their Interactive business,\u201d<\/strong> said Wieczynski.<\/p><\/blockquote>\n

Like other casino stocks, Penn is a travel and leisure<\/a> equity, placing it in the consumer discretionary sector. That\u2019s one of the worst-performing groups this year. But as Wieczynski notes, Penn\u2019s regional casino business may be a baby being thrown out with the bath water, as investors sour on consumer cyclical equities.<\/p>\n

Penn Reality Different than Investor Perception<\/h2>\n

Penn is the largest regional casino operator, meaning it\u2019s not impervious to inflationary pressures<\/a>. Still, the reality of what\u2019s happening at the company\u2019s brick-and-mortar casinos and what investors believe is taking place are two different things.<\/p>\n

\n

In meetings with Wieczynski, Penn management said the regional casino customer remains healthy, and the operator has catalysts for its land-based business, as more patrons in the 65-and-up demographic return to the venues.<\/p>\n<\/div>\n

\u201cManagement has seen zero signs the regional gaming consumer is pulling back in light of rising gas prices and other inflationary pressures,\u201d says the Stifel analyst. \u201cThis was a theme we heard across our regional and Strip operator meetings, but one worth highlighting ,as investors continue to look for the elusive signs of consumer \u2018pullback\u2019 in our space.\u201d<\/p>\n

Additionally, Penn is less dependent on lower-margin players than it has been in the past — a relevant point against the backdrop of a possible recession, because those are the customers that will swiftly eliminate casino spending in tough economic environments.<\/strong><\/p>\n

Potential Penn Perks<\/h2>\n

Amid high inflation and the specter that the Federal Reserve could raise interest rates by as much as 75 basis points at its next meeting, gaming equities are being taken to task. However, in the case of Penn, earnings are rising while valuation is declining<\/a> \u2013 a potential positive.<\/p>\n

Regarding the regional casino behemoth, it has its own set of catalysts that market participants may not be fully appreciating. Those include a more rational approach to marketing spending today than during the 2008-09 economic crisis.<\/p>\n

\u201cThird, management noted visitation from the high-worth 65+ demographic is still off double-digits versus 2019. Fourth, the majority of PENN\u2019s database lives within a 20-minute drive from the property, mitigating the risk from rising gas prices,\u201d <\/strong>concludes Wieczynski.<\/p>\n

He rates Penn a \u201cbuy\u201d with a $50 price target.<\/p>\n","protected":false},"excerpt":{"rendered":"

Penn National Gaming\u2019s (NASDAQ:PENN) land-based casinos remain sturdy. But investors are no longer assigning a premium to the operator\u2019s digital business, which includes Barstool Sportsbook. However, resilient spending among patrons frequenting regional casinos isn\u2019t satisfying market participants, as highlighted by Penn\u2019s 40% year-to-date decline. In a new note to clients, Stifel analyst Steven Wieczynski points […]<\/p>\n","protected":false},"author":46,"featured_media":216840,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nPenn National Stock Is Slumping, But Has Positive Catalysts<\/title>\n<meta name=\"description\" content=\"Penn National could surprise investors, according to a Stifel analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penn National Stock Is Slumping, But Has Positive Catalysts\" \/>\n<meta property=\"og:description\" content=\"Penn National could surprise investors, according to a Stifel analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/\" \/>\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=\"2022-06-10T21:18:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-10T21:28:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Penn2-1024x683.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\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=\"2 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-national-stock-is-slumping-but-has-positive-catalysts\/\",\"url\":\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/\",\"name\":\"Penn National Stock Is Slumping, But Has Positive Catalysts\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Penn2.png\",\"datePublished\":\"2022-06-10T21:18:45+00:00\",\"dateModified\":\"2022-06-10T21:28:52+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Penn National could surprise investors, according to a Stifel analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-stock-is-slumping-but-has-positive-catalysts\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Penn2.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/Penn2.png\",\"width\":1800,\"height\":1200,\"caption\":\"Penn National's Ameristar Casino in Colorado. 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