Union Gaming is optimistic on Accel Leisure’s (ACEL +2.3%) new cope with DraftKings.
“This deal marks the primary distinctive manner for ACEL to monetize and leverage its in depth community, loyal buyer base, and floor power in Illinois, leaving us extra keen about different potential alternatives forward,” updates analyst John DeCree.
“The partnership offers an a variety of benefits for ACEL, together with some speedy financial compensation for brand new buyer sign-ups and unique promoting by DraftKings. The DraftKings branding and sponsorship will even assist drive foot site visitors to VGT places that ought to translate to extra coin-in, which implies extra income for ACEL and its companions,” he provides.
Union Gaming lifts its value goal in Accel to $16 from $13 to rep 18% upside potential. The 52-week excessive for Accel is $13.85.
Seeking Alpha author Vince Martin was recommending Accel again in June when shares have been within the $10 vary.