Penn falls after Truist says strategic review not likely near-term

Shares of Penn Entertainment after moving lower after Truist this morning raised the firm’s price target on the shares to $25 from $23 and kept a Buy rating on the name. Penn is “hyper-focused on meeting if not beating expectations – specifically Interactive,” the analyst wrote after spending time with management. The firm continues to believe the market is undervaluing the company. However, despite the activist letter from Donerail, Truist said it does not think any sort of formal strategic review at Penn is likely in the near-term. The company has a clear ESPN Bet product roadmap, football season is on the horizon, and higher interest rates are still impacting acquisition values for now, the analyst noted. The firm also believes Penn is one of the most efficient land-based operators in its coverage, “which limits any low hanging operational synergies.” In afternoon trading, the shares are down 9%, or $1.68, to $17.37.