{"id":185831,"date":"2021-09-15T11:08:59","date_gmt":"2021-09-15T18:08:59","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=185831"},"modified":"2021-09-15T12:19:32","modified_gmt":"2021-09-15T19:19:32","slug":"wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/","title":{"rendered":"Wells Fargo Starts Coverage of Gaming Stocks, Bullish on Boyd, Caesars, DraftKings, MGM"},"content":{"rendered":"

Wells Fargo is initiating coverage on a variety of gaming stocks. The bank is expressing a preference for names with Las Vegas footprints and exposure to the fast-growing iGaming and regulated sports wagering industries.<\/p>\n

\"Gaming
Wells Fargo starts coverage of a slew of gaming stocks. It’s bullish on those with Las Vegas Strip exposure. Part of the Vegas Strip, pictured above. (Image: Las Vegas Review-Journal<\/em>)<\/figcaption><\/figure>\n

The bank starts coverage of 11 gaming equities, placing \u201coverweight\u201d ratings on six and \u201cequal-weight\u201d grades on the remaining five. Familiar names in the \u201coverweight\u201d camp include Boyd Gaming (NYSE:BYD), Caesars Entertainment (NASDAQ:CZR), DraftKings (NASDAQ:DKNG)<\/a> and MGM Resorts International (NYSE:MGM).<\/p>\n

MGM and Caesars are the two largest operators on the Las Vegas Strip. Both complement land-based casino operations with rising internet gaming and online sportsbook businesses.<\/p>\n

CZR\u2019s sports betting\/iGaming business is worth $42 per share, with all the key pieces to quickly gain market share, and we have confidence in CZR management forging a path to industry leading EBITDA,\u201d<\/strong> said Wells Fargo analyst Daniel Politzer.<\/p><\/blockquote>\n

“With its large Las Vegas Strip footprint, CZR is poised to capitalize on robust leisure\/discretionary spend and the eventual return of group\/convention business; and we forecast ~$10\/share of free cash flow in 2023, with CZR\u2019s balance sheet improving along the way via organic cash flow and asset sales,” Politzer continued.<\/p>\n

Politzer places a $137 price target on Caesars but adds there’s a path for the shares to get to $160. The stock currently resides around $105.<\/p>\n

DraftKings, MGM Among Gaming Stock Standouts<\/h2>\n

The combination of a recovering Las Vegas Strip and the ascent of the BetMGM unit has investors and Wall Street enthusiastic about MGM shares.<\/p>\n

\n

MGM will soon have more than $10 billion in cash on hand, which could be deployed<\/a> for accretive acquisitions. Additionally, BetMGM is now the second-largest online sportsbook in the US, and the dominant iGaming operator. While MGM owns half the business — Entain Plc (OTC:GMVHY) owns the remainder — Wells Fargo estimates the unit is worth $12 to MGM’s share price.<\/p>\n<\/div>\n

\u201cGiven MGM\u2019s long-term track record in allocating capital, we understand this concern, though believe this time is different and that MGM will exercise prudence and sound judgment,\u201d said Politzer. \u201cAnd while we do think M&A will likely be the most substantive use of MGM\u2019s capital, we think that over the past 18 months, MGM’s board\/management team has earned the benefit of the doubt and that its $10B cash balance should be viewed as an asset, not a liability.\u201d<\/p>\n

Regarding DraftKings, Wells Fargo says that the company can capture nearly a quarter of the iGaming and sports betting markets by 2025. Politzer notes DraftKings’ cross-selling opportunities, including media, are catalysts for the shares. He has a $73 price target on the name, above the Wall Street consensus of $70.<\/p>\n

Bullish on Boyd, Too<\/h2>\n

Boyd Gaming is up 36.49 percent year-to-date, due in large part to increasing vibrancy in the key Las Vegas locals (LVL) demographic.<\/p>\n

Wells Fargo highlights that segment as a catalyst for Boyd stock<\/a>\u00a0while noting the operator’s five percent stake in FanDuel is worth $12 a share. Politzer has a $92 price target on Boyd, implying roughly 50 percent upside.<\/p>\n

\n

Speaking of FanDuel, WellsFargo also has an \u201coverweight\u201d rating on Flutter Entertainment (OTC:PDYPY), which owns the other 95 percent of FanDuel. The other \u201coverweight\u201d name in the bank’s gaming stock universe is Churchill Downs (NASDAQ:CHDN).<\/span><\/p>\n<\/div>\n

Wells Fargo rates Bally’s (NYSE:BALY), Las Vegas Sands (NYSE:LVS), Penn National Gaming (NASDAQ:PENN), Rush Street Interactive (NYSE:RSI), and Wynn Resorts (NASDAQ:WYNN) \u201cequal-weight.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Wells Fargo is initiating coverage on a variety of gaming stocks. The bank is expressing a preference for names with Las Vegas footprints and exposure to the fast-growing iGaming and regulated sports wagering industries. The bank starts coverage of 11 gaming equities, placing \u201coverweight\u201d ratings on six and \u201cequal-weight\u201d grades on the remaining five. Familiar […]<\/p>\n","protected":false},"author":46,"featured_media":185832,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nWells Fargo Likes Gaming Stocks with Las Vegas, Sports Betting Exposure<\/title>\n<meta name=\"description\" content=\"Gaming stocks with Las Vegas exposure and ties to iGaming and sports wagering could be winners, says Wells Fargo.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wells Fargo Likes Gaming Stocks with Las Vegas, Sports Betting Exposure\" \/>\n<meta property=\"og:description\" content=\"Gaming stocks with Las Vegas exposure and ties to iGaming and sports wagering could be winners, says Wells Fargo.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-15T18:08:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-15T19:19:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/strip.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/\",\"url\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/\",\"name\":\"Wells Fargo Likes Gaming Stocks with Las Vegas, Sports Betting Exposure\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/strip.jpg\",\"datePublished\":\"2021-09-15T18:08:59+00:00\",\"dateModified\":\"2021-09-15T19:19:32+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Gaming stocks with Las Vegas exposure and ties to iGaming and sports wagering could be winners, says Wells Fargo.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/wells-fargo-likes-gaming-stocks-with-las-vegas-sports-betting-exposure\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/strip.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/strip.jpg\",\"width\":1200,\"height\":675,\"caption\":\"Wells Fargo starts coverage of a slew of gaming stocks. 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