- Union National Gaming increases its price target on Buy-rated Penn National Gaming (NASDAQ:PENN) to $120 on its view shares still have room to run.
- Analyst John DeCree: "Regulatory momentum has been the most significant catalyst for the shares of PENN. This momentum is due to stay-at-home-orders that have pushed consumers online and forced state governments to seek new sources of tax revenue. Major jurisdictions like Canada, Texas, and Georgia have all changed their tune on sports betting much sooner than expected and could approve legislation this year. In addition, several other states, including Ohio, Kentucky, Connecticut, and Minnesota are advancing legislation as well."
- DeCree also points to continued growth in the core media business for Barstool with value seen from the advertising, merchandise and podcast revenue generated by the business.
- "The convergence of media and gaming is transformational for the entire industry, and PENN is very well positioned to capitalize with its Barstool Sports investment and partnership. With a $100+ share price, significant FCF generation, and very little traditional leverage, PENN is well equipped to keep its foot on the accelerator," notes Decree.
- Penn National Gaming is up 2.01% premarket to $101.10. Penn is one of Seeking Alpha's catalyst watch stocks this week with eyes on New York and Governor Cuomo.