Deutsche Bank upgrades Penn Entertainment and Boyd Gaming to buy
Deutsche Bank moved Penn Entertainment and Boyd Gaming to buy from hold on October 6, arguing that August's regional gaming weakness largely reflected unfavorable calendar timing rather than reduced demand. The bank lifted its Penn price target to $25 from $23 and its Boyd target to $99 from $98. It expects easier comparisons, project progress and capital returns to support the companies' outlooks.
Why it matters
Deutsche Bank says Penn's projected deleveraging could expand its investor base and enable further repurchases. For Boyd, the bank points to its repurchase program, renovation completion and development pipeline as supports for its view.
Key facts
- 1Deutsche Bank changed its ratings on Penn Entertainment and Boyd Gaming to buy from hold on October 6. investing.com
- 2The bank raised Penn Entertainment's target price to $25 from $23. investing.com
- 3The bank raised Boyd Gaming's target price to $99 from $98. investing.com
- 4Deutsche estimated that regional same-store gross gaming revenue excluding Virginia declined 2.5% year over year in August. investing.com
- 5Deutsche expects Penn's lease-adjusted net leverage to drop below 5.0 times at the end of 2027, while including about $50 million in repurchases. investing.com
- 6Deutsche estimates Boyd's quarterly share repurchase programme at roughly $150 million. investing.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.