Barstool Sports could drive 'rapid share gains' for Penn National Gaming and help drive the stock 20 higher, according to Goldman Sachs PENNGet the Full StoryGetty Images Cliff Hawkins
David Portnoy's Barstool Sports could drive "rapid share gains" for Penn National Gaming and help drive shares 20 higher from Wednesday's close, according to Goldman Sachs.
The research firm initiated Penn National at a buy with a 12-month price target of 60 on Thursday, arguing that Barstool's massive social media following can help lower customer acquisition costs for Penn National.
In January, Penn National bought a 36 equity stake in Barstool Sports for 163 million, and has the option to acquire another 14 stake in the economy via warrants three years after the deal.
Since the COVID-19 pandemic shuttered professional sports leagues, Portnoy has shifted his focus, as well as many of his followers, to the stock market.
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Penn National Gaming's investment in Barstool Sports could pay dividends for years to come as online sports betting begins to take off, according to Goldman Sachs.
In a research note published on Thursday, Goldman said that the regional casino operator stands to capture market share in the online sports betting market thanks to the massive social media following of David Portnoy and Barstool Sports. See the rest of the story at Business InsiderNOW WATCH: Why thoroughbred horse semen is the world's most expensive liquidSee Also:Warren Buffett may have dumped his entire Wells Fargo stake last quarter, finance professor David Kass saysBillionaire investor Paul Tudor Jones famously earned a 4-year streak of triple-digit returns. Here are the 7 trading rules he lives by after suffering a devastating loss.Fred Liu's Hayden Capital has returned more than 100 in 2020. He breaks down the simple strategy he used to pinpoint 2 stocks that grew 10-times within just a few years.