PointsBet Holdings' US arm sale price 'underwhelming' - Jefferies

PointsBet Holdings

15/05/2023 20:14

** Analysts at Jefferies deem the sale price of PointsBet's
 PBH.AX  U.S. business divestment to be "underwhelming"
    ** Corporate bookmaker entered deal for sale of its U.S. arm
to Fanatics Betting and Gaming for $150 mln
    ** Brokerage Jefferies says the transaction will materially
lower PointsBet's business risks, but will also remove
optionality around eventual U.S. success
    ** PBH will become a more constrained and less interesting
investment proposition - Jefferies
    ** Brokerage raises PT by 10% to A$1.60, retains "hold"
rating
    ** 2 of 8 analysts rate the stock "buy" or higher, 4 "hold"
and 2 "sell"; median PT A$1.61 – Refinitiv
    ** Stock up 24.2% this year, as of last close

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))