Popular Stories

Analyst: Regional Casino Stocks 'Uniquely Positioned To Enjoy The Most Upside'

Shaun Kelley said Thursday regional U.S. casino operators have a golden opportunity to take advantage of the crisis climate.” data-reactid=”19″>Las Vegas is struggling to recover from the coronavirus shutdown, but Bank of America analyst Shaun Kelley said Thursday regional U.S. casino operators have a golden opportunity to take advantage of the crisis climate.

“Sports/iGaming and margin expansion are the two most transformative themes in our coverage and Regional Gaming companies are uniquely positioned to enjoy the most upside,” Kelley said.

PENN) is the best way to play sports betting and iGaming. Penn and Boyd Gaming Corporation (NYSE: BYD) also have relatively low exposure to the Las Vegas market, which is struggling due to a severe slowdown in air travel and major events.

  • Reduction of lower-margin offerings, such as buffets.
  • More efficient marketing budgets.
  • Reduced staffing.
  • For the month of July, gross gaming revenue from reporting states is down roughly 13% year-over-year as pent-up initial reopening demand subsides. Looking ahead, Kelly is projecting third-quarter GGR will decline 25% from a year ago and fourth-quarter GGR will drop 15%.

    DKNG) and the rest of the sports betting industry. However, Kelley estimates college football accounts for only about 10% of sports betting, and he suspects those gamblers will likely just move to other sports and leagues if the NCAA football season is canceled.

  • Penn National, Buy rating and $50 target.
  • Boyd Gaming, Buy rating and $28 target.
  • Gaming and Leisure Properties Inc (NASDAQ: GLPI), Buy rating and $37 target.
  • VICI Properties Inc (NYSE: VICI), Buy rating and $24 target.
  • MGM Growth Properties LLC (NYSE: MGP), Buy rating and $31 target.
  • 2 Reasons To Own DraftKings Despite Risk Related To College Football Hiatus ” data-reactid=”42″>2 Reasons To Own DraftKings Despite Risk Related To College Football Hiatus

    Latest Ratings for PENN

    Date Firm Action From To
    Aug 2020 Goldman Sachs Initiates Coverage On Buy
    Aug 2020 Morgan Stanley Maintains Overweight
    Jul 2020 SunTrust Robinson Humphrey Maintains Buy

    View the Latest Analyst Ratings” data-reactid=”47″>View More Analyst Ratings for PENN
    View the Latest Analyst Ratings

    View Article Origin Here

    Related Articles

    Back to top button