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Caesars, Flutter is Wells Fargo's Top Sports Betting Equity Idea, DraftKings' Tepid

Caesars, Flutter is Wells Fargo's Top Sports Betting Equity Idea, DraftKings' Tepid

Posted: December 17, 2021, 10:22 h.

Last updated: December 17, 2021, 12:56 h.

Todd Shriber

Following the rough growth of various sports betting stocks, some banks are reassessing their name ratings and price targets. At Wells Fargo, with Caesars Entertainment (NASDAQ: CZR)Flutter Entertainment (OTC: PDYPY)Is at the top of the list of short-term ideas.

Caesars Palace Las Vegas Sportbook
Caesars Palace Las Vegas sports book. Wells Fargo prefers Caesars and Flutter in sports betting equity. (Image: Caesars)

In a note to clients today, analyst Daniel Politzer said Caesars FanDuel's parent company Flutter offers investors the most compelling risk / reward profile in the sports betting industry at the moment. ..

CZR and FLTR offer the highest risk / reward here. We believe that the management of these companies has both credibility and track record to pave the way for profitability (both 2023). "He said in a note to the client.

Politzer repeatedly evaluates "overweight" in both names. He is a game stock in mid-September. Caesars and Flutter are also ranked as two of his favorites at the time.

Caesar, attractive flutter after pullback 2023

Caesars and Flutter have joined other game equity in recent weeks. However, there is no shortage of bullish opinions about the name, saying that the shrinkage experienced by stocks could create an attractive entry point.

Still, Politzer adjusts Caesar's price target from $ to $96. But the new forecast means a 47.6 percent increase from December. 16 Choose. Wells Fargo analysts have added iGaming pullbacks, and online sports betting equity creates interesting opportunities. One of them is Caesars.

Regarding Flutter, FanDuel is the largest online sportsbook operator in the United States, and recent state-level data suggests that operators are maintaining or expanding their market share in marquees such as Michigan and New Jersey. .. November figures from New Jersey also show that FanDuel online casinos are experiencing hot top-line growth. The obvious 2022 catalyst for the Flutter strain is the FanDuel spin-off. But there's more to talk about.

Flutter, also owned by Paddy Power and PokerStars, manages some of the most well-known brands in mature betting markets such as Australia and Europe. Meanwhile, many of our US competitors do not have international exposure.

Draft Kings downbeat, sort

With a 31 percent decline last month, DraftKings (NASDAQ: DKNG) is one of the most annoying sports betting stocks, and Well's Fargo's Politzer offers a lukewarm rating of its name.

Analysts maintain DraftKings' "overweight" rating and predict DraftKings as the top four iGaming / online sportsbook operators in the long run. However, he states that the frequently quoted path to market share trends and profitability is rugged.

The target price for his $41 share price is well above the $800. .. 50 Range Currently traded is based on 2025 corporate value / 5x sales. This is compared to the range of 5 to 8 times the past Draft Kings for 18 months.

Politzer adds a fourth-quarter slide for 44 percent of equities to ease valuation concerns. But as highlighted in, it hasn't invited buyers yet. 21 Decrease rate over the past week

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