Penn (PENN, $92.85), DraftKings (DKNG, $59.50) get buy rating from Needham
Penn National Gaming shares got a buy rating from a Needham analyst who initiated coverage of the online gambling company on Tuesday.
Analyst Bernie McTernanat set a $151 price target on the shares. The analyst said that the risk-reward balance was compelling.
Needham views the North America gambling market as an emerging $35 billion opportunity. McTernanat suggested that the market is still in its nascent stages, with only 25% of the population having access to online sports betting and 10% with access to iGaming.
"We are bullish on the online sports betting and iGaming total addressable market in the U.S. and see the potential for Penn to take significant, profitable market share on the strength of Barstool's differentiated content-driven customer-acquisition strategy," analyst Bernie McTernan said in a report.
The analyst also noted that PENN spends significantly less than peers on external marketing, and that the company will be a net recipient of market access fees in roughly half of the U.S. where it has a regional casino, vs. online-only peers who are net payers.
Needham also initiated coverage of sports-betting company DraftKings with a buy rating and $81 price target. The Investment firm also added it to its Conviction List. According to Needham, DraftKings is a leader in the North America online gambling market.
PENN's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for PENN turned positive on April 22, 2025. Looking at past instances where PENN's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PENN's RSI Oscillator exited the oversold zone, of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 66 cases where PENN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 22, 2025. You may want to consider a long position or call options on PENN as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
PENN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 50-day moving average for PENN moved below the 200-day moving average on April 03, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PENN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PENN entered a downward trend on April 14, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.870) is normal, around the industry mean (12.790). P/E Ratio (4.474) is within average values for comparable stocks, (65.598). Projected Growth (PEG Ratio) (1.008) is also within normal values, averaging (1.549). Dividend Yield (0.000) settles around the average of (0.077) among similar stocks. P/S Ratio (0.437) is also within normal values, averaging (3.547).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PENN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PENN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of gaming and pari-mutuel properties
Industry CasinosGaming