Goldman Sachs says Penn Entertainment is likely to rise as it announces new projects amid a resurgence in the regional gaming sector, and investors should add the stock to their portfolios now. Investment banks have started covering Game Name with buy ratings. He also has a $26 price target on the stock, implying a 23% upside from Thursday’s closing price. “With the local business at an inflection point due to new projects and Interactive’s turnaround, and an attractive (free cash flow) yield, we view PENN as one of the most compelling risk/reward propositions in the gaming industry,” analyst Lizzy Daub said in a client note Friday. The analyst added that the company, which operates dozens of casinos and racetracks, is on track to achieve recurring free cash flow of more than $4 per share by 2028. The stock is up 43% year-to-date as more money flows into regional gaming. More broadly, U.S. commercial gaming revenue rose 7.2% in the third quarter of last year, outpacing gross domestic product, which rose just 3.9% in the same period, according to a Morningstar report. PENN YTD Mountain Penn Entertainment stock will rise 43% in 2026. “We believe the regional gaming industry is in the midst of a resurgence, with M&A activity putting valuations at the floor and earnings revisions creating the potential for further increases,” Dove wrote. Goldman Sachs’ call echoes the consensus on the street. Of the 21 analysts covering Penn, 12 rate the stock as a buy or strong buy, according to LSEG data.
