Penn Entertainment Inc. (NASDAQ: PENN) has been named one of the 10 Best Casino Stocks To Buy Now, as noted in recent analyst commentary. On June 10, Susquehanna reaffirmed its positive recommendation on the stock, raising its price target from $24 to $25.
Proxy Contest and Board Changes
Susquehanna commented on the ongoing proxy contest, expected to conclude by June 17. While the outcome is not expected to dramatically alter the company’s strategy, the firm suggests:
Appointment of two new board members is highly likely
Addition of three or more members is considered unlikely
The proxy battle, though potentially contentious, is not expected to bring major operational disruptions.
Digital Strategy Recalibration
Susquehanna acknowledged the company’s recent shift in digital strategy, describing it as a “painful” but necessary course correction. The adjustment has:
Slowed stock momentum in the short term
Positioned the company for long-term alignment and stability
Despite the mid-course correction, management remains confident that the pivot will ultimately support sustainable growth in its digital and iCasino ventures.
Updated Price Target: A Sign of Stabilization
The price target increase to $25 reflects a modest rise in optimism, driven more by stabilization than expectations of rapid growth.
“While the digital shift has been challenging, we view the re-alignment as a healthy reset for future performance,” Susquehanna analysts noted.
Investment Outlook: Cautious Optimism
While PENN shows potential as a casino sector investment, Susquehanna hinted that some AI stocks may offer greater upside with lower downside risk in the short term.
If you’re seeking undervalued AI stocks with the potential to benefit from Trump-era tariffs and onshoring trends, the firm recommends exploring their free report on the best short-term AI stock opportunities.
