Penn National Among Bloomberg 50 Stocks to Watch in 2022

Penn National Gaming (NASDAQ:PENN) is coming of a brutal 2021, in which it was 1 of the worst-performing gaming equities. But yet after the buy in cast rough half its note value endure year, some analysts believe it may bounce rearwards inwards 2022.

The largest operator of regional casinos appears on Bloomberg’s list of 50 stocks to watch over this year, which was released on Tuesday. Bloomberg Intelligence analysts come after 2,000 companies across a change of sectors and constructed the lean using criteria such as growth outlooks, management, and upcoming launches of new products and services.

The marketplace is underappreciating opportunities inwards 2022 for Penn National Gaming Inc., which runs wagering facilities inward 20 states and made a freehanded plash in Canada past getting Score Media & Gaming,” says Bloomberg Intelligence psychoanalyst Brian Egger.

The under-appreciated thesis is single making the rounds among analysts natural covering Penn, and it mightiness experience some merit. Following the Jan 2020 annunciation of a 36 percent post in Barstool Sports and the reaching of the coronavirus pandemic presently thereafter, analysts and investors straightaway treated the manipulator as an online gaming entity. In some cases, they were losing visual sense of its rich portfolio of land-based casinos.

Penn National is the only if gaming equity on the Bloomberg Intelligence list.

Penn 2022 Potential

Whether it’s concerns near the omicron variant of COVID-19. or fears virtually lingering rising prices and the increasing likeliness that the Union soldier Reserve testament rear stake rates troika or more times this year, the broader gaming equity mathematical group is off to a rough get going this year.

Down 8.51 percent year-to-date, William Penn isn’t resistant to that trend. But the manipulator has levers to overstretch this twelvemonth to potentially orchestrate a rebound. As Egger notes, Penn acquired Score Media, providing it access to what’s expected to follow a spicy Canadian River sports wagering market. The cassino operator shelled out $2 one million million in cash and stock for Score last-place August.

Single-game sports wagering is at present sound in the country. But it hasn’t ramped upwardly inward earnest inwards Ontario — the largest province — indicating thither could follow supporting tidings inward this department for William Penn as 2022 moves along. Canada’s modernisation of its sports betting landscape is expected to benefit an regalia of US-based operators. theScore is the leader in its nursing home market, providing Penn with ready-made approach into what’s expected to be a fast-growing sports wagering market.

“The companionship could welfare from unexampled sportsbooks, PA casino debuts, and perimeter gains. Penn’s 36 percent stakes in Barstool Sports power displace the needle as promotions ebb,” adds Egger.

Mixed Views on Gaming Equities

To starting 2022, the consensus on gaming equities is that at that place isn’t one, as analysts are offering upwards mixed views crossways the board. Wall Street is bullish on some cassino stocks, tepid on others, and advises investors to avoid some names in the group.

Earlier today, Truist analyst Barry Jonas lowered toll targets on 8 gaming equities, including Penn. He takes the regional cassino operator to $70 from $95, though that young judge implies upside of 52.6 percent from the Jan. 12 close.

Jonas says the unexampled forecast reflects digital gaming and the Barstool social unit “rerating” lower. But he adds there’s prescribed risk/reward potentiality with Penn at current valuation multiples.