Bofa Securities ended its opening weekend in Pennsylvania with an early, positive response to the Barstool Sportsbook app.
Penn National Analyst: Shawn Kelly reiterated the buy rating Penn National Gaming (Nasdaq: Pen) and raised the price target from $ 59.75 to $ 85.
Barstool Sports Book: Barstool Sportsbook app is the No. 1 sports betting app and No. 1 sports app Apple Inc. (NASDAQ: AAPL) The company’s App Store during the weekend opening. Barstool founder Dave Portnoy took to Twitter to show the No. 1 spot for this app.
“Our initial impressions were positive due to the ease and leverage of the Barstool brand’s app to create a unique interactive experience,” Bofa Kelly said in a Monday note. “We think the app is generally better targeted than competitors.”
In the first two days of availability, the Barstool Sports app was downloaded 29,000 times. This is four times the number of fan dual and downloads Draftkings Inc. (Nasdaq: DKNG) saw after their latch, the analyst said.
He said the Barstool sports book app had been downloaded 23,000 times on Saturday, more than any other day for rivals Fan Duel and Draft Kings.
The app maintains a 4.9-star rating, making it the top sports book.
“The next critical step is the pen’s ability to convert from downloads to deposits and deposits into bets / earnings,” Kelly said.
Bofa’s Penn National Price Target: The increased price target came from the initial success of the Bar విజయంstool app and the rise in DraftKings shares, the analyst said.
“We are moving ahead with the 2022 forecast and allocating more multiples to sports and iamings following the recent move in draftkings,” the analyst said.
Bofa’s price target is based on 2022 earnings 12x EV / EBITDA Multiple and 8.5x earnings on Sports Betting / Igaming.
“Most consumer growth stocks trade at double-digit EBITDA multiples,” Kelly said. “It’s easy for us to see the pen’s leverage, small size, retail base, momentum and little interest factor and extra knocking.”
Pen Price Action: Shares of Penn National traded 0.55% lower at $ 70.21 on the last check Monday.
The stock hit a 52-week high of $ 76.62 before the launch of the Barstool Sportsbook.
Courtesy Photo.
Latest ratings for PENNNs
| Date | Company | Action | From | To |
|---|---|---|---|---|
| September 2020 | B of a securities | Maintains | Purchase | |
| September 2020 | Rosenblatt | Enables coverage | Purchase | |
| September 2020 | Bank of America | Reiterates | Purchase |
See more analyst ratings for PENN
See latest analyst ratings
© 2020 benzinga.com. Benz does not advise investment. All rights reserved.
Beatrice Ashford is a contributor at Nintendo-power.com, covering a wide range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and useful information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the world around them.