Penn National will nosedive 57% as weak fundamentals overshadow ‘internet meme’ rally, Deutsche Bank says
October 1, 2020 | internet | No Comments
- An influx of retail-investor interest in Penn National Gaming boosted shares too far, too fast, Deutsche Bank said Thursday.
- The bank’s analysts lifted their price target for Penn National Gaming shares on Thursday to $31 from $22, implying a 57% plunge over the next 12 months.
- While Penn National’s improvements to operating costs show promise, the stock has transformed “into an internet meme of sorts” without the fundamentals to support its rally, the analysts said.
- Few states are interested in passing online gambling legislation, and the company’s total addressable market is smaller than bullish investors realize, they added.
- Watch Penn National trade live here.
Penn National Gaming shares are up more than 800% from their mid-March trough, but Deutsche Bank doesn’t think the rally will hold.
Analysts Carlo Santarelli and Steven Pizzella raised their price target to $31 from