Benchmark starts Penn Entertainment at Hold on ESPN Bet concerns

As previously reported, Benchmark analyst Mike Hickey initiated coverage of Penn Entertainment with a Hold rating and no price target. While the firm has concerns about the ability of ESPN Bet to significantly influence the U.S. online sports betting market, it also thinks these issues are already reflected to “some degree” in the company’s current valuation and contends that given the “diminished valuation” that shares could see a potential valuation reset if ESPN Bet can gradually capture a material market share.