The bookmakers all over the world rub their hands with the expected start of the Tokyo Olympics. And also the shareholders of the few firms in the sector that are listed on the stock market. Among the most recognized worldwide, three arrive at the starting line of this competition with a potential upside of 30% and a majority buying advice for your actions.
Although the absence of public in the stands of the sports facilities in Tokyo will be the umpteenth economic blow for its promoters, the bookmakers keep their business potential intact. What’s more, some analysts even consider that the fact that the tests have to be followed through the screens will help the number of bettors to be higher this time and more recurring.
Within hours of the start, a recent study by Taboola notes that the disciplines that generate the most interest on the open web are basketball, baseball and boxing. All three have a long betting tradition, especially the last one. A factor that encourages the chances of sports betting houses getting an extra boost for your business at a time when the absence of other competitions often erodes their income.
With these premises, the taking of positions in some of the firms in the sector that garner the most praise among experts is presented as a risky but accessible strategy to win. Even more so at a time when the expansion of the Delta variant of Covid-19 threatens the recovery of prices that had begun to occur in sectors such as tourism.
Within this concentrated sector in which mergers and acquisitions have continued to occur in recent years, the American Penn National Gaming it is the one that most seduces analysts. Its consensus price target of $ 106.5 per share represents a potential upside of 47.6% for its shares, which enjoy 60% buy recommendations.
However, unlike the other two in the sector that have a potential of more than 30% in the trading floor, it is the only one that receives sales recommendations. Although only two of the 15 analysts who most closely follow the evolution of a business opt for this strategy that, within the shortlist, is also the most concentrated in its own facilities and physical casinos.
In the case of Drafkings, the upside potential is limited to a still generous 43.8% compared to its current price: up to 70.41 dollars. However, the percentage of purchase recommendations reaches 70.4% of investment firms that comment on their future in the market.
Novak Djokovic, during the 2020 Tokyo Olympics. .
its strong roots among young people and their growing commitment to digital competitions o e-Sports also brings added potential to the firm compared to its competitors. In this sense, this same week it has announced the next launch of a platform for the sale of non-fungible tokens, the crypto assets of art and collectibles commonly known by the English acronym NFT.
The third on this particular podium is Caesars Entertainment, which has a consensus potential of 34.7% to its price target of $ 125.27 per share. Although the firm is especially known for its casino businesses in emblematic locations such as Las Vegas, it has been the owner of the online gambling brand since April this year. William Hill.
Not a single one of the analysts who follow its evolution opts for the sale of its shares. Upside down, 11 of the 14 that advise on the company recommend buying (78.6%), while only three opted for the prudence of holding positions (21.4%).
More known, less potential
Four other listed companies in the sector also enjoy upward consensus potential, although more moderate. These are the British Flutter Entertainment, Betsson, Entain and 888 Holdings, whose sports betting brands enjoy greater diffusion among the Spanish public. A factor that may perhaps make them more attractive to some investors.
In the case of Flutter entertainment, which is the header of Paddy power Y Betfair, the potential is 23.3% compared to its current listing on the London Stock Exchange. 58.8% of analysts who follow its evolution advise the purchase of its shares. As regards the Swedish Betsson, the potential reaches 21% although it only reaps one purchase advice and two to keep.
The bullish pitch for Entain it is 15% from its current stock market valuation. 88% of analysts consider that the firm that owns brands such as Sportium, Bwin Y Ladbrokes Coral must be bought, the highest percentage in this regard in the entire sector. No one advises its sale and the remaining 12% opts to maintain positions unchanged.
So it refers to 888 Holdings, the potential drops to 2% on the London floor. In addition, the experts are much less enthusiastic, since no less than ten of the dozen analysis houses that give their opinion on the value opt for the sale.
Caution with Codere
Much caution is the one that also reigns around the Spanish Codere, which has lost 63% of its market value so far this year. Immersed in a deep process of debt restructuring and refinancing that keeps the founding family, the Martínez Sampedros, on the warpath, is planning its own delisting and the market launch of your online business through a SPAC.
Invertia analyst Eduardo Bolinches explains that his graph shows a “Clear acceleration of the corrective pattern after the highs of last May”. In this process, it has already taken ahead the supports of 0.77 euros and 0.54 euros per share.
In his view, the recovery of this last level “is vital to be able to assess some type of more lasting reaction over time.” However, he considers that “most likely he will not be able to and has started a new correction to test and lose the recent lows of 0.447 euros per share”, despite the fact that there are finally the Olympic Games this summer.