Score Media and Gaming Inc. TSCRD

SCR US$50 target by Credit Suisse today

[challenger426]

Score Media and Gaming Kept at Outperform by Credit Suisse as Canada Readies to Legalize Single-Game Sports Betting

22 Jun 202111:19 ET

 
11:19 AM EDT, 06/22/2021 (MT Newswires) -- Credit Suisse on Tuesday reiterated its outperform rating on the shares of Score Media and Gaming (SCR.TO) with a US$50.00 target price as Canada readies to legalize single-game sports betting, arguing that the company is likely to be a leader in that market.
"Today, bill C-218 will be voted on in the Senate, which would legalize single-game sports betting in Canada," the investment bank said in a note " ... The positive momentum in the legislation has led to a rally in SCR shares, which are up 75%+ since last month. In spite of this move, we still think there is sufficient room for upside - at ~$22.50 a share (price at close), SCR is still trading at just 1.5x our 2026 sales estimate. For context, DKNG trades at ~6x street '25 sales, and ~5x '26 sales. Bottom line, we believe that SCR is positioned to be a market leader in Canada, as we estimate ~20% of Canadian sports fans are SCR users. At ~$22.50 we think that essentially implies zero value for the US (where SCR is live), zero value for any provinces outside of Ontario, and ~7.5% share of Ontario (vs the 20%+ OSB/10% iGaming share we think they eventually garner)."