Investment firm Stifel raised its price target for Penn Entertainment from $23 to $25 per share while also reaffirming the operator’s buy rating.
Optimism for Second Half of the Year
The upgrade followed meetings between analyst Jeffrey Stantial and Penn management, leaving the firm optimistic about the company’s prospects for the second half of 2026.
On Thursday, June 11, Penn shares closed at $21.21, representing a gain of more than 28% over the past year.
According to Stantial, the company’s outlook has been supported by a mix of factors. The list includes healthy performance recorded at its land-based casinos, improving returns from recently completed development projects, as well as encouraging progress within its digital gaming business.
All Eyes Online
A lot of the attention has centered on Penn’s strategic switch to the online world of gambling.
After finishing its sports betting partnership with ESPN in December 2025, the company decided to redirect its efforts toward building an online casino-focused business instead of trying to compete head-to-head with industry leaders in sports wagering.
The move followed several expensive years of trying to establish a meaningful presence in sports betting.
Penn spent approximately $550 million acquiring Barstool Sports before selling it back to founder Dave Portnoy for just $1 in 2023.
The company then agreed to partner with ESPN in a deal that was reportedly worth around $2 billion over a decade, but ESPN Bet struggled to gain significant market share against dominant competitors such as FanDuel and DraftKings.
Six months after ending the ESPN arrangement, Stifel believes Penn’s new strategy is progressing as planned.
The firm’s research note indicated that sports betting activity has declined as Penn reduced promotional spending, a development management had anticipated. However, that decline has been partially offset by stronger performance from the Hollywood Casino online platform and customer acquisition efforts focused on casino gaming.
Visible Results
The financial results suggest the transition is starting to pay off, with Penn reporting a whopping online casino revenue growth of 362% during the first quarter compared with the same period a year earlier.
At the same time, adjusted EBITDA losses within the digital division were reduced by $70 million.
Looking ahead, analysts see additional opportunities for profitability through lower marketing expenses, reduced payment processing costs, and operational efficiencies.
Penn continues to operate theScore Bet across 20 US states and Canada, where it has established a strong presence in Ontario. The company is also preparing to expand into Alberta when the province launches regulated online casino and sports betting operations on July 13.