Penn Entertainment Analysts Say ESPN Bet Sportsbook In Early Innings: ‘Building A Business Takes Time And Money’



Casino and sports betting company PENN Entertainment Inc (NASDAQ:PENN) reported fourth-quarter financial results before market open Thursday.

Here’s a look at what analysts are saying after the report and the future growth of ESPN Bet.

The Penn Analysts: Macquarie analyst Chad Beynon had an Outperform rating and lowered the price target from $35 to $33.

Needham analyst Bernie McTernan had a Buy rating and lowered the price target from $33 to $32.

Stifel analyst Steven M. Wieczynski had a Hold rating and lowered the price target from $27 to $23.

JMP Securities analyst Jordan Bender had a Market Perform rating and no price target on Penn.

Related Link: ESPN Bet Is Coming To New York: What Penn Entertainment Investors, Sports Bettors Should Know

Macquarie on Penn: The losses of the digital segment were greater than expected, Beynon said in a new note.

The good news for Penn in the fourth quarter was that it had more ESPN Bet downloads than expected. The bad news was that this meant higher losses than expected, the analyst noted.

“Digital trajectory is main driver of the Penn story, in our view,” Beynon said.

The analyst highlighted commentary from the company on the launch of ESPN Bet in North Carolina and New York later this year, more product improvements and deeper media integration.

“Penn’s Interactive losses are similar to DraftKings’s largest quarterly loss of $314 million during its customer acquisition push, and better than Caesar’s loss of $554 million. However, these companies are …

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