PENN Entertainment And ESPN Bet Hold Potential Amid Regulatory Hurdles: Analyst
Portfolio Pulse from Shivani Kumaresan
Benchmark analyst Mike Hickey initiated coverage on PENN Entertainment Inc (NASDAQ:PENN) with a Hold rating, citing the company's strategic focus on expanding its digital footprint, leveraging partnerships, and enhancing land-based operations. The expansion of ESPN Bet is expected to benefit from the U.S. online gaming market's growth, potentially surpassing $30 billion by 2028. The entry into the New York online sports betting scene could significantly boost PENN's stock, although regulatory pressures could pose challenges.

April 16, 2024 | 5:54 pm
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PENN Entertainment Inc receives a Hold rating from Benchmark analyst Mike Hickey, highlighting its potential in the online gaming market with ESPN Bet, despite facing regulatory challenges.
The Hold rating reflects a cautious optimism towards PENN's strategic initiatives and potential market growth through ESPN Bet, balanced against the risks posed by regulatory hurdles. The analyst's coverage initiation and the potential for market share growth in the online gaming sector could influence investor sentiment, but the mention of regulatory pressures suggests a tempered outlook. The impact on PENN's stock price in the short term is likely to be neutral, as the market digests the potential for growth against the backdrop of regulatory challenges.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100