- PENN Entertainment received a rating upgrade and price target increase from Bank of America on Monday due to the popularity of its new ESPN Bet app.
- PENN purchased the rights to the famous sports name from Walt Disney Co. in August for $1.5 billion.
- ESPN Bet has been the No. 1 or No. 2 most popular free app on the iOS Store since its launch on Nov. 14, according to Bank of America.
Penn Entertainment (PENN) stock was buoyed by Bank of America on Monday after the sports betting operator acquired the rights to the famous ESPN sports brand owned by Walt Disney (DIS) for $1.5 billion in August. The price soared after the company announced that it was receiving significant benefits.
Bank of America analyst Sean Kelly upgraded Penn Entertainment’s stock from “neutral” to “buy” and raised his price target from $27 to $30.
Kelly said initial downloads and app activity for Penn’s rebranded ESPN Bet app, which launched on Nov. 14, were “much stronger than expected.” The analyst noted that PENN’s initial offers on the app showed promotional discipline, and noted that what he called “solid” third-quarter profits were better than expected for the company’s core gaming business. It pointed out.
Kelly said that since its launch, ESPN Bet has been either the first or second most popular free app on Apple’s (AAPL) iOS Store, with cumulative downloads even without data for Sunday NFL games. He pointed out that it has received 865,000 reviews and an app store rating of 4.8 points.
BoA analysts were also optimistic about the company’s future, saying they are seeing “positive signs, including full-screen takeovers in app/web and mentions of early content.”
Penn Entertainment stock soared on the news, hitting its highest level since the deal with ESPN was announced.