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The changing landscape of how Americans watch sports is developing in a way that could benefit gambling stocks, according to Wells Fargo. Wells Fargo analyst Daniel Politzer said the initial results showed the technology passed the test for bettors who want to gamble in between plays. "During week 1 of the NFL season, Caesars Sportsbook app had a livestream of NFL SNF. Latency was better than live TV (20-30 seconds), an incremental development in the OSB/media ecosystem that could potentially increase in-game betting," Politzer said. Increased in-game betting could lead to a higher hold for sportsbooks, Politzer said, which is effectively the margin that books make on all bets.
Persons: Wells, Daniel Politzer, Politzer, Flutters, — CNBC's Michael Bloom Organizations: NFL, Caesars, Caesars Entertainment, sportsbooks, CNBC, NBC Locations: Wells Fargo
DraftKings can add to its blockbuster 2023 performance as it heads toward $1 billion in adjusted EBITDA, according to Well Fargo. DKNG YTD mountain DraftKings stock "EBITDA is inflecting more quickly/steeply than we previously envisioned, and we expect its op. He cited structural hold improvements, shorter payback periods, secular growth and industry consolidation and aging cohorts driving down promotional expenses as tailwinds for earnings growth. The analyst added that DraftKings' bull thesis is beginning to play out, noting growing market share and increasing structural hold, all while costs "remain in check." Upcoming state launches and more potential state legislation allowing sports betting in the near quarters could lead to more expansion for DraftKings.
Persons: Daniel Politzer, Politzer, CNBC's Michael Bloom Organizations: NFL, DraftKings Locations: Fargo
As the first quarter of 2023 kicks off, Wells Fargo has its eye on what it calls stocks that offer tactical trading opportunities. Wells Fargo analyst Daniel Politzer upgraded Wynn to overweight from equal weight on Monday . Merck also made the Wells Fargo list, with the firm setting a price target of $125. And Wells Fargo has a $50 price target for Dynatrace , which implies 30% over Tuesday's close. Wells Fargo believes the software company has the "only enterprise-grade cloud platform capable of supporting modern workloads in a hybrid environment."
Wynn Resorts should rally as China moves closer to a full reopening, according to Wells Fargo. Wells Fargo analyst Daniel Politzer upgraded the stock to overweight from equal weight. "We have long held the view that Macau's recovery remains the key driver of WYNN's stock," Politzer said in a note to clients Monday. "For the first time in several years, we see better days ahead as China is pivoting from its COVID-zero strategy and easing travel restrictions." Politzer said rising Covid cases or reinstated travel restrictions could also threaten growth.
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