- Oops!Something went wrong.Please try again later.
The largest casino company in the U.S., Caesars Entertainment, has bought a minority stake in fantasy sports platform, Superdraft. Caesars has the option to increase its stake to 100% over time at pre-determined levels.
SuperDraft will join Caesars’ (CZR) online brands, which include World Series of Poker, Caesars Online Casino, and William Hill, and will become part of Caesars’ single wallet solution that allows members more options to play games both live and online.
The strategic investment will reinforce Caesar’s strong mobile sports and gaming network and will enhance the company’s customer acquisition and retention capabilities for both online and in-person gaming offerings.
Tom Reeg, CEO of Caesars Entertainment, confirmed this by saying “The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports… we believe it offers a tremendous opportunity to strengthen our position in the sports gaming landscape.”
Steve Wang, CEO & Founder of SuperDraft, said, “We’re super excited to be part of Caesars’ powerful gaming ecosystem,” while co-founder Nate Hunter echoed Wang’s sentiments by adding “Caesars is a strong strategic partner that will allow us to further enhance our industry-leading tech stack and provide an enhanced player-first experience.” (See CZR stock analysis on TipRanks)
Truist analyst Barry Jonas reiterated his Buy rating on the stock two weeks ago and raised his price target to $92 from $85. This implies upside potential of around 15% from current levels.
Jonas believes that although fourth quarter industry results might be soft due to restrictions resulting from the coronavirus pandemic, the increased distribution of vaccines will open up a “tidal wave of pent-up demand for in-person social engagement and experiences.”
Consensus among analysts is a Moderate Buy based on 7 Buys and 3 Holds. The average price target of $85.00 suggests upside potential of around 7% over the next 12 months.
Caesars scores a 2 out of 10 on TipRanks Smart Score, which indicates that it has historically underperformed the market.
Blackberry Says Unaware Of Reason For Share Bonanza; Street Sees 56% Downside
Twitter Settles Shareholder Derivative Lawsuits
Veoneer Inks Driver Assistance Software Partnership With Qualcomm