(SKLZ) – Why This Skillz Analyst Is Bullish On Growth Prospects For Esports Platform
Skillz Inc.’s (NYSE: SKLZ) growth in gamer engagement and retention has boosted its revenue, which in turn has increased the budget available to the company to improve and introduce new experiences that further propel engagement, retention and revenue, according to Wedbush.
The Skillz Analyst: Michael Pachter initiated coverage of Skillz with an Outperform rating and $34 price target.
The Skillz Thesis: The company is likely to “capture increasing wallet share through its unique business model, greater adoption of paid entry fee gaming contests and several untapped growth opportunities,” Pachter said in an initiation note.
Skillz’s growth is likely to outpace that of the mobile game industry, the analyst said.
Skillz aims to boost revenue generated through significant spending on user acquisition, he said.
“It is prioritizing the opportunity in its home geography before turning its attention elsewhere. This decision is prudent in our view as Skillz has a first mover advantage in an industry that could be worth billions of dollars in the U.S. alone.”
SKLZ Price Action: Shares of Skillz were up 9.39% at $26.80 at last check Wednesday.
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