Analyst Stephen Grambling initiated coverage of the casino company with a buy rating and $60 share-price target.
He’s enthusiastic about the company's sports-gambling potential.
“PENN sits at the cross-section of a rapidly rebounding regional casino space and inflecting growth in sports betting,” Grambling wrote in a commentary obtained by TheStreet.
Penn National "has unique positioning relative to peers based on mobility and COVID-19 data analysis,” he said. “This … guides our near-term segment earnings before interest, taxes, depreciation, and amortization above consensus expectations.”
The coronavirus pandemic hammered the company and the industry, shutting casinos and keeping gamblers at home.
“Despite starting the second quarter with our entire property portfolio closed due to the pandemic, we ended the quarter in a significantly improved financial position," Penn National Chief Executive Jay Snowden said in a statement.
That came "as a result of continued mitigation efforts that contributed to significant margin improvement, a successful capital raise, and very strong financial performance at our properties since reopening.”
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