The investment firm is bullish on Penn's acquisition of a 36% interest in popular sports news platform Barstool Sports and on the Wyomissing, Pa., company's burgeoning sports betting business .
"If PENN can leverage Barstool’s brand with a best-in-class and differentiated app, ... there is potential for PENN to be the market leader," analyst Bernie McTernan said.
Penn National shares at last check jumped 9.2% to $63.51.
Penn National "has the potential to gain significant share in online betting, driven by their partnership with Barstool providing a differentiated customer acquisition strategy," McTernan said.
"While we continue to expect DKNG and FanDuel to be leaders in the online betting space given their first-mover advantages ... Penn could already have their ear, an envious position."
Sports betting in the U.S. is about to ratchet up as the National Football League season kicks off Thursday.
Americans wagered $13 billion legally in 2019, the first full calendar year since the U.S. Supreme Court struck down federal sports gambling restrictions, with the NFL leading the way, according to a study from Kambi.
The NFL's return and the timing of Barstool Sports betting's debut could be catalysts for Penn's stock, according to Rosenblatt.