Inspired Entertainment, buyers’ focus, Mohegan Tribal Gaming, VICI – CDC Gaming

Wall Street Bets is a roundup of latest notes from analysts protecting the playing trade.

 

Inspired Entertainment

B Riley Securities’ Josh Nichols on April 6 checked out prospects for Inspired Entertainment:

“We believe buy-rated Inspired Entertainment ($13 price target) ended 1Q with favorable business momentum that is not reflected in the ~$7 share price (4.3x 2026E EV/EBITDA). Management guided 1Q EBITDA up at least +20% year-over-year with improved segment mix driving better margins, and end-market data suggests interactive momentum continued to build throughout the quarter — consistent with the record late-February activity referenced on the 4Q call. The retail business is also demonstrating broad-based strength that has gone unnoticed by investors focused on the digital transformation story.”

Gaming sector buyers

Jefferies’ David Katz checked out what piques the curiosity of buyers April 5:

“Investors have been notably focused on online sports betting and digital names in general for several reasons. The ongoing noisy narratives of Kalshi, the process of legalization of both OSB and igaming in various states and the recent positive data points on OSB. Our view is that prediction markets for sports are different from non-sports and the complexities around sports predictions could continue for some time, and DraftKings (-35% year-to-date), Sportradar (-30% year-to-date) and others remain in “prove-it mode” whereas Rush Street stands out in efficiency (+12%). We consider all three have estimates positioned to maneuver larger, which helps our bullish view.”

Mohegan Tribal Gaming Authority

Fitch Ratings April 2 introduced it positioned the ‘B’ Long-Term Issuer Default Ratings (IDRs) and all situation rankings of Mohegan Tribal Gaming Authority and MS Digital Entertainment Holdings on Rating Watch Positive following the introduced sale of the Tribe’s WNBA franchise, the Connecticut Sun:

“The Rating Watch reflects the expected reduction in leverage from the sale proceeds of the WNBA Connecticut Sun basketball team. The potential application of most of the proceeds to debt reduction could result in a positive rating action. The rating also reflects the leading market position of the Mohegan Sun casino, growing digital results, and positive free cash flow generation. The rating also reflects a lack of geographic diversification, the potential impact of the opening of New York City casinos and limited financial flexibility.”

Vici Properties and Pure Casino Entertainment

Barry Jonas of Truist Securities March 30 checked out VICI Properties’ take care of Pure Casino Entertainment (PURE):

“VICI acquired 2 gaming assets in Alberta for $144 million, in connection with PURE’s take private deal at an 8.0% cap rate. The lease will generate ~$12 million in annual rent and be modestly accretive to adjusted funds from operations (~30 basis points) while deepening VICI’s relationship with PURE. Reflecting the upsized Cain & Eldridge loan, we take our estimates up to the high end of the guide to $2.45 (from $2.44) adjusted funds from operations/share. We continue to appreciate VICI’s execution and stability of rent payments despite uncertainty across the macro.”