PointsBet Holdings extends losses as U.S. arm sale seen 'underwhelming'

PointsBet Holdings

16/05/2023 04:18

(Adds share moves, milestones)
    ** Shares of Pointsbet Holdings  PBH.AX  decline as much as
12% to A$1.280, extending losses for a third straight session to
hit their lowest level since April 17
        ** Corporate bookmaker on Monday said it entered into a
deal for sale of its U.S. arm to Fanatics Betting and Gaming for
$150 mln
    ** Analysts at Jefferies deem the sale price of PBH's U.S.
business divestment to be "underwhelming"    
    ** Jefferies says the transaction will materially lower
PBH'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
    ** More than 6.7 mln shares change hands, compared with the
30-day average volume of ~2.4 mln shares 
    ** Two of eight analysts rate the stock "buy" or higher, 4
"hold" and 2 "sell;" median PT A$1.61 – Refinitiv
    ** Stock up over 24% this year, as of last close

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