Penn Entertainment paid fair price for NY license, says Craig-Hallum

Craig-Hallum analyst Ryan Sigdahl keeps a Hold rating on Penn Entertainment with a $30 price target after the company announced an agreement with Wynn Interactive to acquire its online sports betting license in New York for $25M. Given that Wynn’s online sports betting strategy hasn’t materialized as hoped, it is shutting down the business and monetizing assets where possible, the analyst tells investors in a research note. The firm thinks $25M is a fair price for both sides given the limited number of licenses in the state. It also notes that the fair value has decreased recently as many operators struggle. Hallum says New York presents a large total addressable market, adding critical scale for Penn’s national marketing and synergies with players traveling between neighboring states.