two gaps Bally’s fills with ease.<\/a> The analyst says Gamesys will benefit from Bally’s recent acquisition of technology provider Bet.Works and the casino operator’s deal with Sinclair Broadcasting to put the Bally\u2019s brand on 21 regional sports networks (RSNs).<\/p>\n<\/div>\n\u201cBALY is one of the last major US casino companies with significant market access, making it an ideal partner for GYS looking to scale in the nascent US digital gaming industry,\u201d adds DeCree.<\/p>\n
The analyst lifts his price target on Bally’s stock to $110, implying upside of almost 62 percent from the March 24 close.<\/p>\n
Good Deal for Bally’s<\/h2>\n Pursuant to UK law, Bally’s has until April 21 to formalize a proposal for Gamesys, but with both companies’ boards endorsing the transaction, bringing the deal across the finish line appears likely.<\/p>\n
Adding to the allure of Gamesys for Bally’s, the buyer is getting free cash flow-generating international operations at a fair price.<\/p>\n
\u201cWith the total purchase price set at ~2.5x 2022E revenues (per Factset), we believe BALY is effectively paying fair price for Gamesys’s international operations, with 100% upside thereafter as BALY leverages the technology and seasoned management team here in the US,\u201d <\/strong>said Stifel analyst Steven Wieczynski in a note.<\/p>\nThe analyst adds the target averages 90 percent-plus free cash flow conversion, giving Bally’s a cash cow to use to fund further expansion in the US.<\/p>\n
He reiterates a \u201cbuy\u201d on Bally’s stock while lifting his price forecast to $75 from $70.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bally’s Corp. (NYSE:BALY) and Gamesys (OTC:JKTPF) are confirming a $2.7 billion takeover by the casino operator of the British online gaming firm. It marks one of the buyer’s largest acquisitions to date. In a regulatory filing with the Securities and Exchange Commission (SEC) on March 23, Bally’s revealed it made an offer for Gamesys, saying […]<\/p>\n","protected":false},"author":46,"featured_media":168480,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093],"tags":[],"acf":[],"yoast_head":"\n
Bally's Gamesys Takeover Dubbed Exciting by Analysts<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n