BofA lowered the firm’s price target on Penn Entertainment to $28 from $30 and keeps a Buy rating on the shares, noting that ESPN Bet Q4 and 2024 losses are larger than expected. The outlay for ESPN Bet may be shifting higher as peak startup losses are now double the $300M-$400M the firm anticipated only back in August. While stronger customer acquisition is the primary reason, potential share gains are not keeping up and elevated operating expenses raise the fixed cost bar and breakeven point for the business, the analyst tells investors.
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