Penn Ascent Sets fast cost Target Revision, Barstool App Targets Illinois by March Madness

Published on: 5, 2021, 05:30h february.

Final updated on: 5, 2021, 11:18h.(* february)

Todd Shriber

The Barstool Sportsbook at the Greektown Casino in Detroit. An analyst is highly bullish on Penn stock. (Image: Reading Eagle)

Penn stock
Penn stock
After the close of US markets Thursday, Stifel analyst Steven Wieczynski issued a note to clients in which he reiterated a” that is“buy on Penn, with a brand new cost target of $124. That forecast that is new just a few days after the analyst tagged the regional casino operator with a $118 estimate. It closed at $118.34 yesterday.

While some would argue PENN shares could be overvalued, we believe shares can continue to work, especially thru 2021, as we expect a number of states to pass gaming legislation which should keep the sports momentum that is betting/iGaming,” said Wieczynski.

His $124 cost perspective could be the greatest among all analysts addressing Penn stock, and it is nearly 31 per cent over the opinion target of $94.75. Stocks regarding the operator of Ameristar and Hollywood gambling enterprises, among other brands, are greater by 36 per cent on the month that is past*).

Sports Betting MomentumPenn reported results that are fourth-quarter, and even though profits per share and income missed Wall Street forecasts, the stock rallied as analysts and investors embraced strong iGaming and recreations numbers.

The company’s Barstool Sportsbook software is inhabit Pennsylvania and Michigan. The very early returns from the Wolverine State are motivating, as Penn stated following the software established on Jan. 22, it gained 48,000 users while notching a handle that is total of27.5 million in just 10 days.

“Sports betting trends continue to be encouraging. Michigan rollout was better than in PA because PENN launched when the state launched,” said Wieczynski.

The analyst said Barstool Sportsbook could be ready to go in the Illinois that is fast-growing market time for the NCAA Tournament, also called March Madness. Every three to five weeks before getting to 10 states.

Penn after that, Penn could launch the mobile betting app in a new state Stock High, Costs Low

While Barstool Sportsbook app is live in just two states, its ability to gain users that are registered regarded as impressive by analysts. The operator’s fast come from Michigan as well as its house state of Pennsylvania sticks out much more whenever Penn that is considering many of its rivals, isn’t dropping big dollars to reel in customers.

“PENN’s customer acquisition costs remain low relative to peers. While some other online providers are indicating $300 to $800 per customer acquisition costs, PENN has been well below the low-end of that range,” said Wieczynski. “Even they can be profitable well inside that range.”

Additional if they start to get more aggressive with promotions and advertising, PENN still believes recreations wagering catalysts for Penn this present year consist of procuring licenses in Louisiana and Maryland, that should be an task that is easy given the company’s brick-and-mortar footprint in those states. There is also the potential for Massachusetts, Missouri, and Ohio to at least approve sports that is wagering

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