{"id":194509,"date":"2021-12-08T09:50:07","date_gmt":"2021-12-08T17:50:07","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=194509"},"modified":"2021-12-08T11:00:36","modified_gmt":"2021-12-08T19:00:36","slug":"draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/","title":{"rendered":"DraftKings, Penn Earn Cautious, But Optimistic Analyst Commentary"},"content":{"rendered":"

In recent weeks, DraftKings (NASDAQ:PENN) and Penn National Gaming (NASDAQ:PENN) are among the most repudiated sports betting equities. But at least one analyst is cautiously optimistic on the pair.<\/p>\n

\"Penn
CBRE analyst John DeCree in a February interview. He’s tepid on DraftKings and Penn National but sees some positives for both stocks. (Image: CNBC<\/em>)<\/figcaption><\/figure>\n

CBRE analyst John DeCree is resuming coverage of a slew of gaming stocks, including DraftKings and Penn National. He rates both \u201chold,\u201d but he’s bullish on the long-term prospects for the internet casino and online sports wagering industries.<\/p>\n

\n

DeCree has a $36 price target on DraftKings, implying upside of 15.1 percent from the Dec. 7 close. His price projection on Penn is $60, which is 17.6 percent above where the stock closed on Tuesday. The analyst is more constructive on casino operators<\/a> with exposure to digital gaming, but he favors those with Las Vegas exposure. While it’s the largest regional casino operator in the US, Penn doesn’t have a Strip venue, and DraftKings doesn’t operate any land-based gaming venues.<\/p>\n<\/div>\n

DeCree’s calls on DraftKings and Penn arrive during a lengthy period of weakness for the once high-flying duo. The online sportsbook giant is down 55.38 percent from its 52-week high, while the Hollywood casino operator resides 63 percent below that level.<\/p>\n

Penn Problems Could Abate<\/h2>\n

The CBRE analyst acknowledges recent controversy surrounding Barstool Sports<\/i> founder David Portnoy may be temporarily keeping institutional investors away from Penn stock.<\/p>\n

Last month, a lengthy expose published in Insider<\/em> revealed tawdry details of Portnoy’s dalliances with multiple women, leading to a massive intraday tumble<\/a> for the stock. Portnoy is not being charged with any crimes because the encounters were consensual, and he maintains the Insider <\/i>article is no more than a hit piece.<\/p>\n

\n

The prevailing consensus in the analyst community in the wake of the expose is a cautious tone on Penn stock while acknowledging the situation is a distraction<\/a>. That seems to align with DeCree’s thinking on the shares, as he says he’s waiting for \u201cinflection points\u201d to bump DraftKings and Penn to \u201cbuy\u201d ratings.<\/p>\n<\/div>\n

Penn National owns 36 percent of Barstool Sports<\/i> and has rights to eventually acquire Portnoy’s company outright.<\/p>\n

Long-Term View on DraftKings<\/h2>\n

Regarding DraftKings, the CBRE analyst says the company continues to execute well. But well-heeled competition is an issue. Translation: Rivals like BetMGM and Caesars Entertainment (NASDAQ:CZR) have the resources to play the long game in sports betting, and have other businesses to offset any weakness encountered in the digital space.<\/p>\n

DraftKings is drawing criticism from at least one well-known investor<\/a>, who sees an extended timeline to profitability and says the company is overvalued.<\/p>\n

For his part, DeCree is optimistic about DraftKings’ long-term prospects. But his $36 price target on the stock is well below consensus.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

In recent weeks, DraftKings (NASDAQ:PENN) and Penn National Gaming (NASDAQ:PENN) are among the most repudiated sports betting equities. But at least one analyst is cautiously optimistic on the pair. CBRE analyst John DeCree is resuming coverage of a slew of gaming stocks, including DraftKings and Penn National. He rates both \u201chold,\u201d but he’s bullish on […]<\/p>\n","protected":false},"author":46,"featured_media":194510,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nDraftKings, Penn National Draw Lukewarm Reviews In New Coverage<\/title>\n<meta name=\"description\" content=\"Analyst is tepid on DraftKings and Penn National, but sees some reasons to like the stocks.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings, Penn National Draw Lukewarm Reviews In New Coverage\" \/>\n<meta property=\"og:description\" content=\"Analyst is tepid on DraftKings and Penn National, but sees some reasons to like the stocks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/\" \/>\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=\"2021-12-08T17:50:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-08T19:00:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/decree.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1910\" \/>\n\t<meta property=\"og:image:height\" content=\"1074\" \/>\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=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/\",\"name\":\"DraftKings, Penn National Draw Lukewarm Reviews In New Coverage\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/decree.jpg\",\"datePublished\":\"2021-12-08T17:50:07+00:00\",\"dateModified\":\"2021-12-08T19:00:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Analyst is tepid on DraftKings and Penn National, but sees some reasons to like the stocks.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-penn-national-draw-lukewarm-reviews-in-new-coverage\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/decree.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/12\/decree.jpg\",\"width\":1910,\"height\":1074,\"caption\":\"CBRE analyst John DeCree in a February interview. 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