PENN - Sports betting stocks are called out by CBRE for attractive valuation

CBRE Equiry Research dove into the value side of investing in U.S. sports betting stocks in a new note posted on Wednesday. Analyst John DeCree said the value of U.S. sports betting businesses is now dislocated due to the risk-off sentiment in the market. "While we appreciate the uncertainty of both inflation and rising rates, we believe valuation of most US sports betting businesses overcorrected," he noted. DraftKings (NASDAQ:DKNG -1.8%) is said to remain the valuation benchmark as the only large cap pure-play, trading at what is seen as a reasonable valuation of 3.2X FY23 revenue. Meanwhile, DeCree thinks the implied valuation of sports betting businesses of competitors like Caesars Entertainment (NASDAQ:CZR -2.7%), MGM Resorts (NYSE:MGM -1.0%), Penn National Gaming (NASDAQ:PENN -2.0%), Flutter Entertainment (OTCPK:PDYPY -2.5%) and Entain (OTCPK:GMVHF) are low and should be decoupled from other high-growth sector sell-offs for two important reasons. "First, gaming companies are very profitable

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Sports betting stocks are called out by CBRE for attractive valuation