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Which Are The Best Casino Stocks To Buy In A Dip?
The Casino market is crippling down as fears of Chinese economy are devastating the investors confidence. Wells Fargo analyst Daniel Politzer recently examined a dozen gambling shares and said investors should be extremely selective, especially when it comes to exposing Macau. Instead, Politzer opts for Las Vegas-focused stocks and American online gambling markets. Here are seven stocks of sports that Wells Fargo recommends buying in the dip.
MGM Resorts International (tick: MGM)
MGM Resorts is a global gaming business. BetMGM’s operating system was also ranked second in the money market in the US total online betting in the first half of 2021, accounting for about 20% of the market. Wells Fargo has a “obesity rate” with a $ 55 stock price target for MGM, which closed on September 29 for $ 43.85.
Flutter Entertainment PLC (PDYPY, FLTR.L)
Flutter Entertainment is the world’s largest bookmaker and owns Paddy Power, BetFair and PokerStars. The company also has a 95% patent interest in the FanDuel online sports betting app. Politzer says Flutter will hold 27% in the $ 18.8 billion online sports market by 2025. US investors can also find Flutter trading over the counter under the PDYPY brand.
Boyd Gaming Corp. (EARTH)
Boyd Gaming is the US regional casino operator most developed by Las Vegas, a Politzer that accounts for accounts for about 30% of revenue. Boyd has produced impressive line extensions in the final stages, and Politzer says most of these extensions are stable as his Las Vegas business has more than 50% stake. In addition, Boyd owns 5% of FanDuel’s remaining Flutter, which Politzer estimates cost about $ 1.3 billion. He says Boyd’s balance is very healthy compared to his peers. Wells Fargo has a “obesity rate” with a $ 92 share price of BYD stock, which closed on September 29 at $ 64.55.
Caesars Entertainment Inc. (CZR)
Caesar Entertainment operates in 44 casinos and entertainment venues in 13 US states. The company rents approximately 25 of the 44 properties. Politzer says Caesar is also Vegas’s best short-term rescue game. Wells Fargo has an “overweight” rating and a $ 137 stock price in CZR stock, closing at $ 113.40 on September 29.
Churchill Downs Inc. (CHDN)
Churchill Downs is an American horse race, an online gambling company and a regional gambling company. In addition, he says the 2022 Kentucky Derby, in particular, could be a catalyst for economic recovery due to the demand for event safety due to the ongoing health crisis. Wells Fargo has an “overweight” rating and a $ 255 price tag on the CHDN stock, which closed on September 29 at $ 238.58.
Draft Kings Inc. (DKNG)
DraftKings is an online betting platform with daily fairy tale games. Draft Kings is second largest company in casino dealing in casino operations. DraftKings is the purest digital game in the US, according to Politzer. DraftKings controls about 17% of the US online gaming market, but Politzer says it could increase that share as the company prepares its products and integrates the newly acquired Golden Nugget Online Gaming assets. Wells Fargo has an “overweight” rating and a $ 73 DKNG stock price, which closed on September 29 for $ 48.32.
Red Rock Resorts Inc. (RRR)
Red Rock Resorts has 10 play and entertainment venues and 10 small casinos in the vast Las Vegas area. He estimates that the company’s Durango casino development costs about $ 4 a share and says the company’s precious acreage offers additional development opportunities that improve down the road. Red Rock is the only pure investment in Las Vegas casinos, making it an unattractive Vegas rebound game. Wells Fargo has an “overweight” rating and a $ 62 price target for RRR stock, which closed at $ 51.89 on September 29.
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