Macquarie Cuts Price Targets on Seven Sports Betting Stocks Citing Las Vegas Brazil Updates and Lower Hold
Macquarie’s Chad Beynon cut targets on seven stocks including DraftKings, Flutter and MGM due to Las Vegas and Brazil updates, lower hold and prediction market costs. He forecasts 6% sports betting and 18% casino revenue growth for the period with full-year figures of $18.5B and $12.1B. Sector stocks are down 12% monthly yet remain resilient.
SCCG Take — The selective cuts flag specific headwinds but preserved outperform ratings on most names point to sustained operator execution. Q3 commentary will test whether optimism offsets the revised mechanics.
Macquarie analyst Chad Beynon lowered price targets for seven stocks tied to sports betting and online casinos. The revisions account for market updates in Las Vegas and Brazil, reduced sports betting hold, and higher spending on prediction markets. Beynon still expects cautiously optimistic commentary from operators in the coming earnings round, a development he sees as supportive for the stocks.
Gaming stocks have dropped 12% over the last month and 22% over the last quarter. Public data nevertheless supports the view that the industry remains resilient.
Gaming Stock Target Revisions
Seven names saw reductions. Rush Street Interactive fell to $33 (-$2) with 61% upside from Tuesday’s close. DraftKings moved to $34 (-$4) for 72% upside. Flutter was cut to $128 (-$22) implying 68% upside. Genius Sports declined to $11 (-$1) with 77% upside. Inspired went to $7 (-$2) at 76% upside. MGM was lowered to $48 (-$7) for 57% upside. Sportradar dropped to $19 (-$1) with 56% upside.
Caesars held at $31 and Penn Entertainment at $25. Beynon rates Caesars and Inspired neutral. The other seven carry outperform ratings.
Revenue Growth and Handle Outlook
Beynon projects online sports betting gross revenue growth near 6% and online casino revenue growth of 18%. The updated model forecasts $18.5 billion in online sports betting revenue, up 3.4% over 2025. Online casino revenue is seen at $12.1 billion, 15.3% above the prior year. July handle gained from the World Cup. August handle slipped 1%. September trends improved with DraftKings noting double-digit growth mid-month. Kalshi averaged roughly $450 million daily taker volume in September and is expected to rise each month through year-end.
The adjustments detailed in the Macquarie note, as covered by Legal Sports Report, balance identifiable near-term pressures against measurable sector momentum.
Reporting: Legal Sports Report
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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