Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
Sportradar deal with MLB draws attention
“Sportradar’s new extension of its sports-rights deal with the MLB in our view removes a key headwind from its story,” Jefferies analyst David Katz wrote in a February 7 note. “The exclusive agreement, which runs through 2032 and includes a potential equity stake in Sportradar for MLB, adds on to Sportradar’s current exclusive agreements with the NBA, NHL, ATP, the Bundesliga, and UEFA. We view Sportradar’s position in the online sports betting value chain as increasingly secure and its path of earnings acceleration clearer. Reiterate Buy.
J. P. Morgan analyst Samuel Nielsen also looked at the Sportradar/MLB deal February 7. “This partnership was largely expected,” Nielsen wrote, “and while Sportradar has not provided guidance for 2025, we see more upside than downside to our/Street 2025 EBITDA estimates of €270m/€268m, which implies margin expansion of ~160 basis points year-over-year in 2025, or well below Sportradar’s guided 4Q24 exit rate of ~300 basis points year-over-year.
Boyd release draws positive review
Analyst Barry Jonas of Truist Securities looked at Boyd’s financials February 7. “As suspected, Boyd reported a broad beat to our recently raised estimates. Treasure Chest outperformed and drove growth, with core strength and retail stability across locals, Downtown (Las Vegas) and M&S.
“Boyd expects more of the same in 2025, with growth driven by more capital projects. We continue to see Boyd as a core holding for gaming investors given a stellar BS, greenfield/refurb growth and capital returns at a still-undemanding valuation given Boyd’s FanDuel stake and real estate ownership. We tweak estimates (no major changes) at this time and increase our price target to $92 (from $88), based on ~7.5x our ’26E EBITDA plus +$10/share for FanDuel. Reiterate Buy.”
Jeffries’ David Katz also commented on Boyd February 6.
“Solid quarterly performance driven by strong results across the portfolio offset continued weakness in Las Vegas locals,” Katz wrote. “Our regional and Las Vegas locals same-store conservatism continues into 1H25, before acceleration from easier comps and capital projects drive growth into 2026. We continue to favor the pipeline of capital growth projects, coupled with meaningful returns, modest leverage and embedded long-term value opportunities. Reiterate Buy.”
