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- Shares of Penn National Gaming are poised to benefit from “Port’s Momentum Trade” as the sportfit-betting pride expands into the fall football season, Stiffle said Wednesday.
- With the recent launch of the Barstall Sportsbook app, other sports betting ‘announcements’ have also been made, so the stock should continue to ride the tide of sport betting higher, Steffle said.
- As of Wednesday, Penn National has rallied 165% year-on-year, compared to the S&P 500’s year-to-date return of 5%.
- Steffel expects Penn National’s stock to reach ડ 85, representing a potential 25% close to Wednesday’s close.
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Stephen said in a note on Wednesday that the “port’s speed trade” that has helped Penn National Gaming’s shares grow more than 165% year-over-year is ready to continue as “sports-betting euphoria” continues to grow in the fall.
Penn National partnered with Barstall Sports in January. The regional casino opera uses the Barstol Sports brand to set up an online online-sports-betting app to compete with the likes of operative draftkings and fendual.
With the recent launch of the Barstall Sportsbook app, other sports betting ‘announcements’ have also been made, so the stock should continue to ride the tide of sport betting higher, Steffle said.
Steffel said he had made “significant momentum” in all of Penn National’s business sectors and that his previous estimates of the company’s long-term potential were “very convincing and thus needed further refinement.”
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Steiffel said his new estimate led to the decision to raise its price target on Penn National from $ 47 to 85 85, representing a potential uptick of 25% from Wednesday’s close.
In addition to raising his speculation, Steffel speculated that the momentum trade behind Penn National could continue given the real long-term potential of sports online sports betting.
“Here’s the thing: no one will be right or wrong about the size / profitability of those departments. [of sports betting] For years to come, those markets will remain in their infancy and will not mature for 10+ years, ”Steffel said, adding that any positive news surrounding sports betting should put the stock under more pressure.
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The side note is that many states have yet to legalize sports betting, and the COVID-19 epidemic could be the catalyst that allows them to do so, Steffel said.
“Given the ongoing epidemic and the many states hurting tax dollars, we believe there could be 10 states that could quickly track or pass a sports betting / igaming law this November.”
Shares of Penn National jumped 10% to $ 74.73 on Thursday.
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