JPMorgan began coverage of CZR with an “overweight” rating
JPMorgan began coverage of the gaming sector today, calling Caesars Entertainment Inc (NASDAQ:CZR) “overweight” and setting its price target at $47, which implies a more than 60% upside. The firm also named PENN Entertainment Inc (NASDAQ:PENN) as one of its top picks, generating tailwinds for sector peer Rush Street Interactive Inc (NYSE:RSI) higher.
CZR is up 0.4% to trade at $28.25 at last check, pacing for its fifth-straight daily gain. The shares have been struggling with resistance at the $30 region since early March, with pressure at the 100-day moving average also hanging overhead. In the past 12 months, CZR has shed 27.9%.
PENN was last seen 0.4% lower to trade at $16.99, and despite being fresh off its best weekly performance since late April, it still carries a 14.5% year-to-date deficit. Though the stock on Friday hit its highest level since March, familiar resistance at $18 is now capping price action.
RSI is up 2.3% at $14.18 at last glance, after on Friday running to its highest level since February. The security is bouncing off a newfound floor at $13, which was previously a level of resistance in May and late April. The shares have also been enjoying a floor at the 40-day moving average since early April, and have added over 50% in the last 12 months.
Out of those three, RSI is the only one getting attention in the options pits today. Amid low absolute volume, 545 calls have been exchanged so far, which is triple the volume typically seen at this points The most active contract is the July 15 call.