So says Mackie Research Capital analyst Nikhil Thadani, who this morning raised his price target on the stock from $0.70 to $1.00, implying a return of 138 per cent at the time of publication.
The analyst says recent catalysts have him more bullish than every on SCR, saying what has developed is nothing less than a “massive US sports betting validation”.
“We believe SCR stock could surpass April 2015 highs of ~80¢ in coming months,” Thadani writes. “SCR stock is up ~150% since US Supreme Court Overturned a federal sports betting ban last May, we have been consistently highlighting this development as a major catalyst for SCR stock. Last night, the company announced a major US sports betting related partnership, which effectively establishes a ~60¢/sh level for the stock. We expect the company to launch sports betting in New Jersey in the coming weeks, with Indiana likely next in C2020. Our revised $1.00/sh target, equates to ~$90/user vs. yesterday’s pro forma close at ~$35/user. Industry participants have indicated in New Jersey, the average cost of acquiring an online casino player is >US$500 per new depositing customer. Private US daily fantasy (effectively a sports betting workaround to monetize US sports fan engagement) were valued at ~US$1000/user in C2015.”
Thadani thinks theScore will post EBITDA of negative $4.2-million on revenue of $30.7-million in fiscal 2019. He expects those numbers will improve to EBITDA of positive $1.6-million on a topline of $37.3-million the following year.
The analyst today maintained his “Buy” rating on theScore.
On July 31, Forbes reported that theScore had signed 20-year agreement with North America’s largest regional gaming operator, Penn National Gaming Inc. Forbes contributor Zack Jones called the move “a major step in their quest to expand their US mobile sports betting platform…”.
Its first quarter results are in the books and Paradigm Capital analyst J Marvin Wolff thinks there is money to… [Read More]
Ahead of the company's first quarter results, Roth MKM analyst Darren Aftahi thinks there is money to be made on… [Read More]
Ahead of the company's quarterly results, Desjardins Securities analyst Benoit Poirier likes what he sees from Héroux-Devtek (Héroux-Devtek Stock Quote,… [Read More]
With its first quarter results on deck, Beacon Securities analyst Russell Stanley thinks Jushi Holdings (Jushi Holdings Stock Quote, Chart,… [Read More]
The stock has been a steady climber since last October, but ahead of earnings is Curaleaf (Curaleaf Stock Quote, Chart,… [Read More]
Following third quarter results he describes as "in-line", National Bank Financial analyst Richard Tse has cut his price target on… [Read More]