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David Portnoy’s Barstool Sports could drive “rapid share gains” for Penn National Gaming and help drive shares 20% higher from Wednesday’s close, according to Goldman Sachs.
The research firm initiated Penn National at a buy with a 12-month price target of $60 on Thursday, arguing that Barstool’s massive social media following can help lower customer acquisition costs for Penn National.
In January, Penn National bought a 36% equity stake in Barstool Sports for $163 million, and has the option to acquire another 14% stake in the economy via warrants three years after the deal.
Since the COVID-19 pandemic shuttered professional sports leagues, Portnoy has shifted his focus, as well as many of his followers, to the stock market.
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Penn National Gaming’s investment in Barstool Sports could pay dividends for years to come as online sports betting begins to take off, according to Goldman Sachs.
In a research note published on Thursday, Goldman said that the regional casino operator stands to capture market share in the online sports betting market thanks to the massive social media following of David Portnoy and Barstool Sports. See the rest of the story at Business Insider
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