PENN Shares Leap As ESPN Bet Tops App Charts: Analyst Hails 'Encouraging Start'
Portfolio Pulse from Chris Katje
Penn Entertainment (NASDAQ:PENN) received an upgrade from Bank of America analyst Shaun C. Kelley from Neutral to Buy, with a price target increase from $27 to $30, following the successful launch of ESPN Bet. The app's strong initial download and app activity, promotional discipline, and stable Q3 earnings for PENN's core gaming business contributed to the upgrade. ESPN Bet, launched through a licensing deal with The Walt Disney Company (NYSE:DIS), saw 865,000 downloads and topped the sports and overall free apps charts. Kelley suggests ESPN Bet could achieve 6-7% market share in online sports betting and 2% in iGaming. PENN shares rose 7.5% to $26.42 on the news.
November 20, 2023 | 8:17 pm
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POSITIVE IMPACT
The Walt Disney Company's partnership with Penn Entertainment for the ESPN Bet app has led to significant download numbers, potentially impacting DIS's stock.
While the news is primarily about Penn Entertainment, The Walt Disney Company's involvement through the licensing deal for ESPN Bet and the app's success could reflect positively on DIS's stock. The strong start for ESPN Bet may enhance Disney's brand in the sports betting market and could lead to increased investor interest in DIS shares.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Penn Entertainment's stock received an upgrade to Buy and a price target increase to $30 by Bank of America analyst Shaun C. Kelley, following the successful launch of ESPN Bet.
The upgrade by the analyst is a strong positive signal, especially when combined with the successful launch of ESPN Bet and its impressive download figures. The app's performance and the analyst's expectations for market share growth are likely to increase investor confidence and demand for PENN shares in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100