{"id":1127,"date":"2024-04-21T00:12:45","date_gmt":"2024-04-20T21:12:45","guid":{"rendered":"https:\/\/xxbet-company.com\/espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst\/"},"modified":"2024-04-21T00:12:45","modified_gmt":"2024-04-20T21:12:45","slug":"espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/nb\/espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst\/","title":{"rendered":"ESPN Bet an Albatross on Penn Entertainment Stock, Says Analyst"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Innholdsfortegnelse<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/nb\/espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst\/#Parlays_Problematic_for_ESPN_Bet\" title=\"Parlays Problematic for ESPN Bet\">Parlays Problematic for ESPN Bet<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/nb\/espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst\/#Some_Optimism_for_Penns_Regional_Casinos\" title=\"Some Optimism for Penn\u2019s Regional Casinos\">Some Optimism for Penn\u2019s Regional Casinos<\/a><\/li><\/ul><\/nav><\/div>\n<p>The ESPN Bet mobile sports wagering application, which went live last November, is likely to post a larger-than-expected first-quarter loss, thus acting as an overhang on shares of parent Penn Entertainment (NASDAQ: PENN).<\/p>\n<figure aria-describedby=\"caption-attachment-298605\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-298605 size-post-thumbnail-858xAUTO\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/11\/PCW7J7JGPNEMPBPOCGCHEKTTXQ-858x506.jpg\" alt=\"Hollywood Casino ESPNN Bet Penn Entertainment\" width=\"858\" height=\"506\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/11\/PCW7J7JGPNEMPBPOCGCHEKTTXQ-858x506.jpg 858w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/11\/PCW7J7JGPNEMPBPOCGCHEKTTXQ-430x253.jpg 430w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/11\/PCW7J7JGPNEMPBPOCGCHEKTTXQ.jpg 1200w\" sizes=\"(max-width: 858px) 100vw, 858px\" title=\"\"><figcaption class=\"text-description\">The exterior of Hollywood Casino Columbus in Ohio. An analyst says ESPN Bet is weighing on Penn Entertainment stock. (Image: <em>USA Today<\/em>)<\/figcaption><\/figure>\n<p>That\u2019s the take of Deutsche Bank analyst Carlo Santarelli who in a Monday report to clients, trimmed his price target on the stock to $19 from $22 while maintaining a \u201cneutral\u201d rating. The price forecast implies upside of 14.8% from Tuesday\u2019s close and is well below the Wall Street consensus price outlook of $26.51.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>While the multi-year underperformance of the shares has us intrigued, we are (still) adopting a wait and see approach on ESPN BET, which is likely the biggest driver of the stock for the foreseeable future,\u201d wrote the analyst.<\/p>\n<\/blockquote>\n<p>Citing low sports wagering hold, Santarelli said <a href=\"https:\/\/www.casino.org\/news\/espn-bet-could-get-a-boost-from-north-carolina-entry\/\" rel=\"nofollow noopener\" target=\"_blank\">Penn\u2019s digital unit<\/a> is likely to post a loss of $187 million, wider than his original forecast of $167 million. The Pennsylvania-based regional casino operator is scheduled to report results for the January through March period on Thursday, May 2. Analysts expect Penn will report a quarterly loss of 58 cents a share on revenue of $1.66 billion. Over the past 90 days, nine analysts have pared earnings per share (EPS) estimates on the gaming company while none have boosted related forecasts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Parlays_Problematic_for_ESPN_Bet\"><\/span>Parlays Problematic for ESPN Bet<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Penn\u2019s core competency is operating regional casinos, <a href=\"https:\/\/www.casino.org\/news\/penn-entertainment-espn-unveil-significant-sports-betting-deal\/\" rel=\"nofollow noopener\" target=\"_blank\">the hefty price<\/a> the gaming company paid to Walt Disney (NYSE: DIS) for use of the <em>ESPN<\/em> brand has prompted investors to apply more scrutiny to the sports betting side of the business.<\/p>\n<p>Expectations that ESPN Bet would be a money-loser for Penn for a substantial portion of this year are among the reasons the stock is down 17.8% over the past month, and more than double that just since the start of 2024.<\/p>\n<div class=\"callout\">\n<p>In his report, Santarelli noted parlays have been a source of consternation for ESPN Bet in its infancy. It\u2019s possible that over time, the operator will iron out those kinks. How much patience investors extend Penn on that front could be debatable because rivals such as DraftKings (NASDAQ: DKNG) and Flutter Entertainment\u2019s (NYSE: FLUT) FanDuel are proving <a href=\"https:\/\/www.casino.org\/news\/draftkings-super-bowl-hold-solid-big-igaming-opps-ahead\/\" rel=\"nofollow noopener\" target=\"_blank\">to be proficient executors<\/a> in the parlay space.<\/p>\n<\/div>\n<p>Across the industry, parlays, including those of the same-game variety, are viewed as margin enhancers and profit drivers, meaning it\u2019s pivotal operators capitalize on those opportunities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Some_Optimism_for_Penns_Regional_Casinos\"><\/span>Some Optimism for Penn\u2019s Regional Casinos<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Santarelli pointed out that as was the case with other regional casino firms, Penn was hampered by bad weather across the US in January, but revenue flattened out in February and March following a slide in the first month of the year.<\/p>\n<div class=\"callout\">\n<p>Likewise, Santarelli highlighted some strength at Penn\u2019s Midwestern venues, which provided some buffer against weakness at some of the operator\u2019s casino hotels in the South.<\/p>\n<\/div>\n<p>Santarelli added that the M Resort in Henderson, Nev., as well as the Hollywood Columbus and two Penn casinos in Illinois, could benefit from the company\u2019s upgrade cycle, which is expected to run through 2025.<\/p>\n<p>The post <a href=\"https:\/\/www.casino.org\/news\/espn-bet-plaguing-penn-entertainment-stock-says-analyst\/\" rel=\"nofollow noopener\" target=\"_blank\">ESPN Bet an Albatross on Penn Entertainment Stock, Says Analyst<\/a> appeared first on <a href=\"https:\/\/www.casino.org\/news\" rel=\"nofollow noopener\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>The ESPN Bet mobile sports wagering application, which went live last November, is likely to post a larger-than-expected first-quarter loss, thus acting as an overhang on shares of parent Penn Entertainment (NASDAQ: PENN). The exterior of Hollywood Casino Columbus in Ohio. An analyst says ESPN Bet is weighing on Penn Entertainment stock. (Image: USA Today) <a href=\"https:\/\/xxbet-company.com\/nb\/espn-bet-an-albatross-on-penn-entertainment-stock-says-analyst\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":1128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/1127"}],"collection":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/comments?post=1127"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/1127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media\/1128"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media?parent=1127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/categories?post=1127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/tags?post=1127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}