Penn Entertainment upgraded to Buy from Neutral at Roth MKM

Roth MKM upgraded Penn Entertainment to Buy from Neutral with a price target of $40, up from $35. The analyst sees a potential beat and raise quarter when the company reports Q1 on May 4. The firm also sees a case for strategic alternatives involving Penn’s digital segments and sees this narrative building in 2023. With Penn trading near three-year lows and below levels from the January 2020 Barstool acquisition announcement, very little value is priced in for Barstool/Score’s media and internet gaming assets, the analyst tells investors in a research note. Eventually, Roth believes management will take more aggressive action towards unlocking value, where the proceeds could support deleveraging, particularly in a recession.