ESPN Bet Tops App Store Rankings, But Media Integration Is 'Underwhelming Thus Far In Our View,' Analyst Says
Portfolio Pulse from Chris Katje
PENN Entertainment Inc launched ESPN Bet, a sports betting platform, in partnership with Walt Disney Co. Needham analyst Bernie McTernan maintains a Buy rating on PENN with a $33 price target and on DKNG with a $50 target. ESPN Bet topped the iOS app store, exceeding expectations. However, McTernan finds the media integration underwhelming, noting no mentions during a live NBA game. The platform offers unique betting options and is part of PENN's omnichannel strategy. PENN shares are down 0.61% to $24.51, with a 19% gain in the last month.
November 17, 2023 | 3:14 pm
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POSITIVE IMPACT
DraftKings Inc maintains a competitive edge in product according to the analyst, despite the launch of ESPN Bet by PENN. The analyst has a Buy rating and $50 price target on DKNG.
DraftKings is perceived to maintain a product advantage over the new ESPN Bet platform, and the analyst's bullish stance with a Buy rating and $50 price target suggests a positive short-term impact for DKNG.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
Walt Disney Co's licensing agreement with PENN for ESPN Bet could benefit from the platform's success, but the underwhelming media integration noted by the analyst may limit short-term impact.
Disney's involvement in ESPN Bet through the licensing agreement has potential for positive impact, but the current lack of effective media integration may not significantly move the needle for DIS in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
PENN launched ESPN Bet, exceeding app store ranking expectations. Analyst maintains Buy rating with $33 target despite underwhelming media integration. PENN shares down 0.61% but up 19% in the last month.
The launch of ESPN Bet and its top ranking in the app store is positive, but the underwhelming media integration tempers expectations. The analyst's maintained Buy rating suggests confidence in PENN's long-term prospects, but the current share price dip indicates mixed short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90