While casino stocks, including those of some regional operators, are performing admirably in 2023, the opposite is true of Penn Entertainment (NASDAQ: PENN).
Shares of the largest regional casino operator are down 11.78% year-to-date, while rivals including Boyd Gaming (NYSE: BYD) and Red Rock Resorts (NASDAQ: RRR) are up an average of 24%. Sentiment surrounding Penn is dismal, but it’s possible it can’t get any worse, potentially paving the way for a mini-rebound by the beleaguered stock.
In a new report to clients, Stifel analyst Steven Wieczynski noted investors may be pricing in worst case scenarios with Penn stock that might not materialize.
At this point, we believe investors are pricing in not only a meaningful slowdown in the regional gaming consumer, but also effectively zero (if not negative) credit for their Interactive business,” wrote the analyst.
Shares of the largest regional casino operator are down 11.78% year-to-date, while rivals including Boyd Gaming (NYSE: BYD) and Red Rock Resorts (NASDAQ: RRR) are up an average of 24%. Sentiment surrounding Penn is dismal, but it’s possible it can’t get any worse, potentially paving the way for a mini-rebound by the beleaguered stock.
In a new report to clients, Stifel analyst Steven Wieczynski noted investors may be pricing in worst case scenarios with Penn stock that might not materialize.
At this point, we believe investors are pricing in not only a meaningful slowdown in the regional gaming consumer, but also effectively zero (if not negative) credit for their Interactive business,” wrote the analyst.