Jefferies bearish on regional gaming on lack of growth opportunities

Sportradar AG

09/01/2023 12:38

** Jefferies downgrades sports betting firm PENN
Entertainment Inc  PENN.O , casino operator Golden Entertainment
Inc  GDEN.O  and Swiss sports data co Sportradar Group AG
 SRAD.O  to "hold from "buy"
    ** Also cuts PT for PENN to $34 from $50, for GDEN to $43
from $60 and for SRAD to $10 from $18
    ** Brokerage says downgrade on stocks reflects shift in
focus to companies that can withstand recessionary pressures
    ** Brokerage bearish on regional gaming since most markets
are mature with little untapped opportunities
    ** Jefferies instead anticipates gaming sector's recovery in
mainland China and Macau to accelerate with removal of COVID
restrictions
    ** Shares of PENN and GDEN down 0.9% and 0.4%, respectively,
while U.S.-listed shares of SRAD dips 0.8% premarket
    ** Shares of PENN, GDEN and SRAD fell 42.7%, 25.9% and 43.3%
in 2022
 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))