Penn Entertainment Downgraded, Analyst Cites Valuation

Shares of Penn Entertainment (NASDAQ: PENN) traded lower Monday after an analyst downgraded the stock, noting it’s fairly valued at current levels.

In a note to clients on Monday, JMP Securities analyst Jordan Bender downgraded shares of the regional casino operator to “market perform” from “market outperform,” pointing out the stock is “fairly valued” following a lengthy run of lagging its peer group. Penn stock is down 4.33% year to date and lost a quarter of its value over the past 12 months.

Trading at 6.3x earnings before interest, taxes, depreciation, and amortization (EBITDA)/11% free cash flow, we find shares of fairly valued and are downgrading our rating to Market Perform from Market Outperform,” wrote Bender.

The analyst added the “risk-reward is more favorable in other companies” in his coverage universe.
 

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