PENN Entertainment shares went up after Deutsche Bank upgraded the gaming company from Hold to Buy and raised its price target from $23 to $25. PENN shares jumped about 5.3% following the upgrade. The move comes as the company continues to lean on its retail casino portfolio while trying to improve profitability with its iGaming platform.
The upgrade appears to be driven more by PENN’s valuation and core casino operations than by any single development in online betting.
According to Yahoo! Finance, Deutsche Bank believes recent weakness across regional gaming stocks has gone too far relative to the underlying performance of those businesses. PENN was one of two operators upgraded by the firm, along with Boyd Gaming.
That puts more attention on PENN’s traditional casino portfolio, which remains an important part of the company despite years of investment in online sports betting and iGaming.
The company reported record quarterly Retail segment revenue in the second quarter. CEO Jay Snowden said PENN remained focused on growing adjusted EBITDAR, increasing cash flow and reducing leverage. Those results give PENN a more stable foundation while it continues working through changes on its online platform.
PENN has continued investing in its retail casino properties in 2026.
The company opened a new $100 million hotel at Hollywood Casino Columbus in June and also opened its new Hollywood Casino Aurora property in Illinois later that month. PENN has also moved forward with additional development projects, including a new Hollywood Casino Hotel Council Bluffs expected to open in 2028.
That expansion fits with the broader strategy of using PENN’s retail properties as the base of its business rather than relying entirely on digital growth.
PENN has also been reshaping its digital strategy, with more attention going toward iGaming and its Canadian operations.
The company announced a new organizational structure in January that realigned its Interactive business around its digital assets in Canada and the Hollywood Casino product in the U.S. PENN said the changes were designed to improve efficiency and drive customer engagement.
PENN has also taken a more targeted approach to U.S. online sports betting. Its first-quarter investor materials identified U.S. online casino states and Canada as priority markets, while sports-betting-only states were assigned a more measured investment strategy.
That shift shows how PENN is putting more emphasis on its online casino platform.
Canada remains one of the areas where PENN is continuing to invest.
On Oct. 2, theScore Bet announced a multiyear partnership with the NFL covering the company’s Canadian online gaming portfolio.
The agreement gives theScore Bet access to NFL trademarks and marketing rights and allows PENN to build campaigns around events such as the Super Bowl. The partnership also extends to theScore Casino and Hollywood Casino.
The deal follows PENN’s July launch in Alberta, where it introduced theScore Bet alongside theScore Casino and Hollywood Casino.
