07:55 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $8 to $24, based on 5.9x our 2024 EBITDA estimate, below the company's 1-year average forward EV/EBITDA multiple of 8.3x, reflecting our view of higher investment in its digital segment and a weakening U.S. macroeconomic backdrop. We lower our 2024 and 2025 EPS estimates by $1.00 to $1.00 and $1.00 to $1.25, respectively. PENN posts normalized Q1 EPS of ($0.79) vs. $0.44, $0.27 below consensus estimates on revenues of $1.61B vs. $1.67B and $23M below estimates. By region in Q1, Northeast revenues declined 2% Y/Y, South declined 5%, West sales were flat, Midwest declined 1%, and Interactive declined 11%. Interactive adjusted EBITDAR was ($196M) vs. ($6M) a year ago as PENN spends more to attempt to gain market share for its ESPN BET app. We lower our expectations for adjusted EBITDA over the next 12 months but believe shares are undervalued. We like the investments in its interactive segment and believe ESPN BET can gain market share over the next three years.