Berenberg analyst Zachary Silverberg initiates reporting of several gaming stocks today, revealing bullish views on a foursome of well-known names inwards the group.
The psychoanalyst is constructive on drawing and gaming engineering providers, such as consumer-facing, land-based operators, including Churchill Downs (NASDAQ:CHDN) and Penn National Gaming (NASDAQ:PENN), the largest regional cassino operator in the US.
We induct coverage on pentad gaming names with ‘Buy’ ratings on William Penn National Gaming, Duke of Marlborough Downs, International Game Technology and Scientific Games,” said Silverberg inward a annotation to clients. “We look our reporting world testament benefit from the growing securities industry retrieval in retail gaming and up societal outlook surrounding other gaming sector segments same digital and sportsbook.”
The analyst places a $294 cost place on Churchill, implying 14.3 percent upside from electric current levels, noting that the company’s “trophy asset” — the Sir Winston Leonard Spenser Churchill Downs racetrack that hosts the Kentucky Derby — is undervalued. The inventory is upward nearly 39 percent o'er the past times 90 days.
Penn Undervalued, Too
Silverberg is also bullish on Penn National, which is draftsmanship praise from analysts this month. He has a $95 damage target area on the regional casino giant, which is 23.3 percent supra the Oct. 18 close.
Owing to its Barstool Sportsbook building block and the enviable make recognition that business organisation offers, Penn is often viewed as a caper on iGaming and sports wagering, and it is. However, the bulk of the operator’s earnings and revenue are stock-still derived from land-based casinos.
Berenberg’s Silverberg call’s William Penn “a leader in regional gaming,” and says the gunstock is beingness undervalued compared to larger peers. He displays some enthusiasm for the operator’s online sports betting efforts.
“We await Penn testament enamor mindshare, presumption its strong marketing and get to with Barstool Sports and the vertical desegregation of theScore’s technology stack,” said the analyst.
Liking Lottery Names
Silverberg is also constructive on Scientific Games (NASDAQ:SGMS) and International Game Technology (NYSE:IGT) rating both “buy.” The analyst has a $98 forecast on the former and a $35 acoustic projection on the latter.
For IGT, the shaper of the pop Wheel of Fortune slot machine, that implies upside of more than 20 percent from current levels. Citing IGT’s position as unity of the biggest lottery services providers inwards the world, the Berenburg psychoanalyst says the stockpile is undervalued. It offers upside by way of iLottery, iGaming and sports betting. The troupe recently formed a dedicated digital wagering unit.
As for Scientific Games, Silverberg lauds the company’s recent sales event of its sports betting engineering business, and plans to divest its drawing unit. The analyst sees cyberspace and societal casinos, among other factors, stoking hold inward the already spicy shares.
“We trust SGMS offers upside at its current valuation and are optimistic regarding the future of the companion as it invests in cross-platform gameplay,” he said.
Scientific Games is reportedly confining to listing its SG Lottery social unit inward Australia. It is a transaction that could note value the business organisation at upwards to $6 1000000000 and bring forth considerable proceeds for the company’s debt-reduction efforts.