U.S. gaming: KeyBanc starts coverage on promising outlook

Red Rock Resorts

14/01/2021 11:38

** KeyBanc starts coverage on gaming stocks Bally's Corp
 BALY.N , Boyd Gaming Corp  BYD.N , Caesars Entertainment
 CZR.O , Churchill Downs Inc  CHDN.O , and Red Rock Resorts
 RRR.O  with "overweight" rating
    ** While legalization of sports betting and online gaming
are the industry's most significant growth opportunities in
decades, this enthusiasm has also created a bullish sentiment
and boosted total addressable market (TAM) estimates - KeyBanc  
 
    ** Says the U.S. sports betting market has recovered from
the initial slump following the pandemic, with monthly gross
revenue rising from $24.6 mln in June 2018 to ~$303 mln in Nov.
2020 
    ** Brokerage starts coverage on Penn National Gaming
 PENN.O  with "sector weight" rating; says the market is
ascribing excessive credit to co's value
    ** Also initiates coverage on MGM Resorts  MGM.N  with
"sector weight" rating; says it's "the least straightforward
valuation framework in our coverage"
    ** Brokerage initiates the following companies:
 Company Name        Rating           PT
 BALLY'S CORP        Overweight       $65
 BOYD GAMING CORP    Overweight       $58
 CAESARS             Overweight       $89
 ENTERTAINMENT                        
 CHURCHILL DOWNS     Overweight       $239
 RED ROCK RESORTS    Overweight       $30
 PENN NATIONAL       Sector Weight    NA
 MGM RESORTS         Sector Weight    NA
 

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com;))