Score Media & Gaming (NASDAQ:SCR) gillyflower isn’t in time a month removed from its initial public offering (IPO) and Nasdaq listing, but the company is already earning praise on Wall Street.
Macquarie gaming analyst Ched Beynon initiates insurance coverage of the Canadian River media and sports betting companion today with an “outperform” rating and a $44 terms target. That forecast implies upside of virtually 63 percent from the March 19 close.
Score Media & Gaming is well-positioned to capitalise on the burgeoning Second Earl of Guilford American online sports betting and iGaming securities industry given its unique offering, pop make and loyal user base,” writes Beynon inward a short letter to clients today.
Last month, the Toronto-based society raised $162 jillion through and through its IPO after the cut-rate sale was upsized to sestet million shares from cinque million, indicating exact was strong for i of the newest sports betting-related equities. Thus far, Score Media’s theScore nomadic betting app is unrecorded in Colorado, Indiana, Iowa, and New Jersey. The manipulator is eyeing accounting entry into to a greater extent states.
Score Stock Offers ‘Rare’ Combination
Partnerships 'tween gaming and media companies are all the rage in the sports betting world these years with Macquarie previously locution such arrangements could driving force $30 billion in online cassino and sports wagering revenue past 2030.
These agreements are usually sparked past what the companies don’t have. group A received sportsbook operator usually lacks a media footmark spell media enterprises don’t make wagering exposure. However, Score “offers a rarefied structured aboriginal option,” says Beynon.
“As a result, we look authentic, innovative cognitive content to help parkway engagement,” said the analyst. “We guardedly await SCR to parkway depression to mid-single digit domestic share piece running a profitable model.”
Of the existing media/sports betting partnerships, arguably the i Score Media to the highest degree intimately resembles is Barstool Sports and Penn National Gaming (NASDAQ:PENN). Barstool Sportsbook is proving to be a hit for the gaming company due inwards constituent to the media arm’s honey personalities and archetype content. Interestingly, Penn owns 4.7 percent of Score stock.
Catalyst-Rich Story
Adding to the Score stock up thesis is the company’s architectural plan to move its engineering in house, furthering its vertically integrated model. The operator is currently a client of Bet.Works, which is a social unit of rival Bally’s Corp. (NYSE:BALY).
Beynon says that move testament take into account Score to live to a greater extent combat-ready inwards curating its have content, offering more unique bets and in-game wagers.
He adds that followers the IPO, the manipulator has $220 trillion inwards cash, indicating it could live a participant in mergers and acquisitions. Score itself is rumored to live a potentiality takeover target due to the aforementioned media getup and looming single-game betting inward Canada.
The psychoanalyst says Canada will conduce $2 1000000000000 to Score’s add up addressable securities industry inward 2025 and 44.2 one million million in 2030.
Additionally, Score stockpile appears undervalued. Based on its securities industry economic value of $1.6 1000000000 and assuming a multiple of 5x 2030 revenue, that implies the market place is assigning just now ii percent US securities industry share and aught inward Canada to the name, according to Beynon. He sees Canada worth $10 to $20 to the part price.