{"id":322723,"date":"2024-06-16T14:58:25","date_gmt":"2024-06-16T19:58:25","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=322723"},"modified":"2024-06-17T10:25:34","modified_gmt":"2024-06-17T15:25:34","slug":"penn-entertainment-strategic-review-unlikely-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/","title":{"rendered":"Penn Entertainment Strategic Review Unlikely, Says Analyst"},"content":{"rendered":"

Shares of Penn Entertainment (NASDAQ: PENN) slumped Friday after a sell-side analyst said the regional casino operator is unlikely to commence a strategic review over the near term, potentially dashing hopes the company is a takeover target.<\/p>\n

\"Penn
Penn Entertainment’s logo. An analyst said the operator is unlikely to commence a strategic review over the near term. (Image: Casino.org<\/em>)<\/figcaption><\/figure>\n

On volume that was nearly 50% above the daily average, Penn slipped 8.7% on Friday after Truist analyst Barry Jonas wrote in a report that Penn is unlikely to evaluate a sale anytime soon despite a letter to the board by money manager Donerail Group<\/a> pushing the gaming company to mull such a transaction because Penn could command double its current market capitalization in a sale.<\/p>\n

Despite the activist letter, we don\u2019t think any sort of formal strategic review at PENN is likely in the near-term,\u201d wrote Jonas.<\/p><\/blockquote>\n

While Jonas may have rained on the Penn buyout parade, he boosted his price target on the stock to $25 from $23, implying upside of 43.6% from the June 14 close.<\/p>\n

Familiar Refrain on Penn Entertainment Strategic Review<\/h2>\n

The Donerail letter, which was sent to Penn\u2019s board of directors on May 31, stoked upside in the long-lagging stock and some short covering, but since the missive was revealed, analysts have almost universally said an outright sale of Penn is unlikely<\/a> over the near term.<\/p>\n

\n

Jonas echoed that refrain, noting that with interest rates still high, acquisition values could be suppressed. While the higher interest rates caused by persistent inflation have prompted gaming companies to reduce and refinance debt<\/a> \u2014 moves applauded by analysts and investors \u2014 those scenarios are weighing on share prices.<\/p>\n<\/div>\n

Likewise, elevated interest rates indicate that prospective buyers who need financing to execute transactions might be reluctant to strike deals because they\u2019d be subject to higher financing costs and interest expenses.<\/p>\n

\u201cWe also note PENN is one of the most efficient land-based operators in our coverage, which limits any low-hanging operational synergies,” Jonas added.<\/p>\n

Penn Focused on Bolstering ESPN Bet<\/h2>\n

A significant part of Donerail\u2019s excoriation of Penn management and the push for a sale centered on the gaming company\u2019s well-documented missteps in the online sports wagering space. Still, the operator is committed to ESPN Bet, its new sports-wagering mobile application that debuted last November.<\/p>\n

\n

Jonas noted that Penn has a “clear ESPN Bet product roadmap\u201d and that it could benefit during the upcoming football season. A full football campaign could bring clarity regarding ESPN Bet\u2019s long-term prospects. To date, the app has struggled to gain noteworthy market share, but that\u2019s true of nearly all competitors in the space that aren’t DraftKings or FanDuel.<\/p>\n<\/div>\n

Low hold rates, fierce competition, and the specter of increasing taxes are among the issues confounding some internet sportsbook operators, but Penn has the potential to leverage the ESPN <\/em>brand and technological improvements<\/a> to bring more bettors into ESPN Bet during the 2024 football season.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Penn Entertainment (NASDAQ: PENN) slumped Friday after a sell-side analyst said the regional casino operator is unlikely to commence a strategic review over the near term, potentially dashing hopes the company is a takeover target. On volume that was nearly 50% above the daily average, Penn slipped 8.7% on Friday after Truist analyst […]<\/p>\n","protected":false},"author":46,"featured_media":224850,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1],"tags":[81903,81966,81967],"acf":[],"yoast_head":"\nPenn Entertainment Strategic Review Unlikely, Says Analyst<\/title>\n<meta name=\"description\" content=\"Penn Entertainment Strategic Review Unlikely, Says 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-entertainment-strategic-review-unlikely-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penn Entertainment Strategic Review Unlikely, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Penn Entertainment Strategic Review Unlikely, Says Analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-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=\"2024-06-16T19:58:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-17T15:25:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\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-entertainment-strategic-review-unlikely-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/\",\"name\":\"Penn Entertainment Strategic Review Unlikely, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg\",\"datePublished\":\"2024-06-16T19:58:25+00:00\",\"dateModified\":\"2024-06-17T15:25:34+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Penn Entertainment Strategic Review Unlikely, Says Analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Penn Entertainment's logo. An analyst said the operator is unlikely to commence a strategic review over the near-term.(Image: Casino.org)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Penn Entertainment Strategic Review Unlikely, Says Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Penn Entertainment Strategic Review Unlikely, Says Analyst","description":"Penn Entertainment Strategic Review Unlikely, Says Analyst.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/","og_locale":"en_US","og_type":"article","og_title":"Penn Entertainment Strategic Review Unlikely, Says Analyst","og_description":"Penn Entertainment Strategic Review Unlikely, Says Analyst.","og_url":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2024-06-16T19:58:25+00:00","article_modified_time":"2024-06-17T15:25:34+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/","url":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/","name":"Penn Entertainment Strategic Review Unlikely, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg","datePublished":"2024-06-16T19:58:25+00:00","dateModified":"2024-06-17T15:25:34+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Penn Entertainment Strategic Review Unlikely, Says Analyst.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/penn_logo_hor_color_rgb_pos_jpg.jpg","width":1200,"height":800,"caption":"Penn Entertainment's logo. An analyst said the operator is unlikely to commence a strategic review over the near-term.(Image: Casino.org)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/penn-entertainment-strategic-review-unlikely-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Penn Entertainment Strategic Review Unlikely, Says Analyst"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/322723"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=322723"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/322723\/revisions"}],"predecessor-version":[{"id":322753,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/322723\/revisions\/322753"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/224850"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=322723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=322723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=322723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}