Berenberg analyst Zachary Silverberg initiates coverage of several gaming stocks today, telling bullish views on a quartet of well-known names inwards the group.
The analyst is constructive on drawing and gaming engineering providers, such as consumer-facing, land-based operators, including John Churchill Downs (NASDAQ:CHDN) and William Penn National Gaming (NASDAQ:PENN), the largest regional gambling casino manipulator in the US.
We learned person coverage on fin gaming names with ‘Buy’ ratings on Penn National Gaming, Duke of Marlborough Downs, International Game Technology and Scientific Games,” said Silverberg in a take down to clients. “We look our insurance coverage macrocosm testament do good from the growing market place recovery in retail gaming and up societal outlook surrounding other gaming sector segments same digital and sportsbook.”
The analyst places a $294 price aim on Churchill, implying 14.3 percent upside from stream levels, noting that the company’s “trophy asset” — the John Churchill Downs racetrack that hosts the Bluegrass State Derby — is undervalued. The stock up is up nearly 39 percent o'er the past 90 days.
Penn Undervalued, Too
Silverberg is also bullish on William Penn National, which is draftsmanship praise from analysts this month. He has a $95 terms aim on the regional gambling casino giant, which is 23.3 percent higher up the Oct. 18 close.
Owing to its Barstool Sportsbook social unit and the enviable trademark recognition that business organisation offers, Penn is often viewed as a play on iGaming and sports wagering, and it is. However, the mass of the operator’s earnings and revenue are noneffervescent derived from land-based casinos.
Berenberg’s Silverberg call’s William Penn “a leader inward regional gaming,” and says the stock is existence undervalued compared to larger peers. He displays some enthusiasm for the operator’s online sports betting efforts.
“We expect Penn will capture mindshare, presumption its warm marketing and contact with Barstool Sports and the perpendicular integration of theScore’s engineering 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 psychoanalyst 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 one-armed bandit machine, that implies upside of to a greater extent than 20 percent from stream levels. Citing IGT’s position as ane of the biggest lottery services providers inward the world, the Berenburg analyst says the carry is undervalued. It offers upside past way of iLottery, iGaming and sports betting. The companionship 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 lottery unit. The analyst sees net and societal casinos, among other factors, stoking hold inward the already hot shares.
“We believe SGMS offers upside at its current valuation and are optimistic regarding the future tense of the company as it invests inward cross-platform gameplay,” he said.
Scientific Games is reportedly shut to listing its SG Lottery social unit inward Australia. It is a dealings that could value the business sector at upwardly to $6 one thousand million and generate considerable proceeds for the company’s debt-reduction efforts.