• JPMorgan is optimistic about PENN Entertainment's stock future despite
• The investment bank that by the end of 2026, PENN could hit $24 stock price
• JPMorgan said that the company was on an "attractive catalyst path"

JPMorgan is perhaps an outlier in not sharing concerns about PENN Entertainment’s future. The company, which has been involved in a spat with activist investor HG Vora, has decided to look on the bright side, arguing that the company was on an "attractive catalyst path," acknowledging its difficulties but bracing for the future by investing heavily in viable projects.

PENN has much going on, with stock projections promising

The company, said JPMorgan, deserved an overweight rating, which was granted by the investment bank, along with a $24 price target. Presently, PENN trades at $17.11, and was trading at slightly less than that on Monday, when the investment bank issued its statement and recommendation.

There are reasons to be optimistic, argues the bank. For one, there are $ 1bn worth of projects scheduled to roll out over the coming years, with JPMorgan seeing this as a strong incentive to share value.

Although the spat with HG Vora still overshadows the company, the 2025 Annual Meeting of Shareholders saw shareholders elect both Johnny Hartnett and Carlos Ruisanchez to the Board of Directors, potentially ending this contentious chapter in the company’s history.

HG Vora has repeatedly accused PENN Entertainment’s management of misusing funds for personal gain, a claim that the C-suite has firmly rebuffed, calling it a mischaracterization of facts.

The $24 price target for the company’s shares, though, is a long-term target, that JPMorgan thinks is feasible by the end of 2026.

ESPN Bet is not a concern for the time being

PENN is currently bringing in $6.6bn in annual revenue and has a 40% gross margin, which are even better financial criteria markers. An outstanding issue with ESPN BET remains, however, as the company has been failing to capture a significant part of the sports betting market.

Not even the ESPN branding has helped reach the intended results, and PENN has cautioned that the deal may indeed end at the end of 2026 if a feasible business model is not discovered. However, the company has also clearly committed to improving results for its key asset.

It is not clear how much of JPMorgan’s price target projection rides on ESPN Bet turning its fortunes around.

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