Penn National Among Bloomberg 50 Stocks to Watch in 2022
Penn National Gaming (NASDAQ:PENN) is coming of a unrelenting 2021, inwards which it was unity of the worst-performing gaming equities. But even out after the stock throw away rough half its value utmost year, some analysts believe it may bound endorse inwards 2022.
The largest manipulator of regional casinos appears on Bloomberg’s list of 50 stocks to see this year, which was released on Tuesday. Bloomberg Intelligence analysts come after 2,000 companies crossways a change of sectors and constructed the name using criteria such as growing outlooks, management, and upcoming launches of new products and services.
The marketplace is underappreciating opportunities inwards 2022 for William Penn National Gaming Inc., which runs wagering facilities in 20 states and made a bountiful slosh in Canada by getting Score Media & Gaming,” says Bloomberg Intelligence analyst Brian Egger.
The under-appreciated thesis is ace making the rounds among analysts cover Penn, and it mightiness have some merit. Following the January 2020 promulgation of a 36 percent bet inward Barstool Sports and the reaching of the coronavirus pandemic soon thereafter, analysts and investors forthwith treated the operator as an online gaming entity. In some cases, they were losing ken of its late portfolio of land-based casinos.
Penn National is the only if gaming equity on the Bloomberg Intelligence list.
Penn 2022 Potential
Whether it’s concerns around the omicron variant of COVID-19. or fears near lingering inflation and the increasing likelihood that the Union soldier Reserve will wage increase stake rates trinity or more times this year, the broader gaming equity radical is cancelled to jolting scratch this year.
Down 8.51 percent year-to-date, Penn isn’t immune to that trend. But the manipulator has levers to overstretch this yr to potentially orchestrate a rebound. As Egger notes, William Penn acquired Score Media, providing it memory access to what’s expected to follow a hot Canadian River sports wagering market. The cassino manipulator shelled out $2 one thousand million inwards hard currency and stock for Score last-place August.
Single-game sports wagering is now legal in the country. But it hasn’t ramped upwards inward earnest in Ontario — the largest responsibility — indicating on that point could follow supporting word inward this department for Penn as 2022 moves along. Canada’s modernization of its sports betting landscape painting is expected to do good an array of US-based operators. theScore is the leader inwards its home market, providing William Penn with ready-made memory access into what’s expected to follow a fast-growing sports wagering market.
“The fellowship could benefit from young sportsbooks, Pennsylvania casino debuts, and border gains. Penn’s 36 percent stake inwards Barstool Sports power relocation the goad as promotions ebb,” adds Egger.
Mixed Views on Gaming Equities
To embark on 2022, the consensus on gaming equities is that thither isn’t one, as analysts are offering upwardly mixed views crosswise the board. Wall Street is bullish on some cassino stocks, tepid on others, and advises investors to avoid some names inwards the group.
Earlier today, Truist analyst Barry Jonas lowered price targets on eighter from Decatur gaming equities, including Penn. He takes the regional cassino manipulator to $70 from $95, though that unexampled gauge implies upside of 52.6 percent from the Jan. 12 close.
Jonas says the new forecast reflects digital gaming and the Barstool building block “rerating” lower. But he adds there’s prescribed risk/reward possible with William Penn at electric current valuation multiples.