Penn Entertainment is likely to rise as it debuts new projects amid a revival of the regional gaming sector, so investors should add the stock to their portfolios now, according to Goldman Sachs. The investment bank initiated coverage of the gaming name with a buy rating. It also put a $26 price target on shares, implying 23% upside from Thursday’s close. “We see PENN as one of the most compelling risk/rewards in the gaming sector, with its regional business at an inflection point, helped by new projects and Interactive turning a corner, with an attractive [free cash flow] yield,” analyst Lizzie Dove said Friday in a note to clients. The analyst added that the company, which operates dozens of casinos and racetracks, is on track to clock recurring free cash flow of more than $4 per share by 2028. Shares are up 43% in the year to date as more money has flowed into regional gaming. More broadly, commercial gaming revenue grew 7.2% in the U.S. in the third quarter of last year, outpacing the country’s gross domestic product, which increased just 3.9% during the same period, according to a report from Morningstar. PENN YTD mountain Penn Entertainment stock is up 43% in 2026. “We believe the regional gaming sector is in the midst of a resurgence, with M & A activity putting a floor under valuation and earnings revisions now offering the potential to move higher,” Dove wrote. Goldman Sachs’ call falls in line with consensus on the Street. Of the 21 analysts covering Penn, 12 have a buy or strong buy on the stock, LSEG data shows.
Goldman Sachs says buy this gambling stock, sees it adding to its sharp 2026 gains
