MVB Financial Top Bank Bet on iGaming Momentum, Says Analyst
Investors sounding to get at the development inward iGaming and online sports betting without making direct wagers on gaming companies may have an interesting option to debate inwards MVB Financial (NASDAQ: MVBF).
The Benjamin West Virginia-based community bank isn’t a well-known bank building firebrand on par with the likes of Bank of America and JPMorgan Chase. But online gaming operators cognize MVB Financial well, and depend on the institution to stock client deposits.
That business posture positions the cant to take advantage on the online betting boom, and analysts are taking notice. In a observe to clients on Monday, JPMorgan’s Steven Alexopoulos reiterated his “overweight” rating on the stock, noting MVB is a foundational bit in banking for net gaming operators.
We bump that the MVB squad has been forming an ecosystem around the bank over the past five years serving the online gaming manufacture (which was legalized at the federal level off inwards 2018),” wrote the analyst. “It was really enlighten to us that MVB’s clients in the gaming manufacture value that MVB was committed to serving the manufacture from too soon on when other banks were either not interested or did non have got specialized expertise to step in.”
Alexopoulos track his toll mark on MVB to $24 from $35. But that calculate allay implies upside of 16.8% from Monday’s close.
MVB Financial Baby Thrown Out with Regional Bank Bathwater
Shares of MVB Financial are depress by 6.68% and sour 40.78% over the past tense year, with practically of that carnage incurred earliest this yr amid the collapses of Silicon Valley Bank and other regional banks.
In single week in March, MVB shares slumped 15%. But that decline may make been a compositor's case of overreaction. Nearly all of the bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Additionally, MVB has limited exposure to the cryptocurrency place and isn’t obligated to pay interest group on the deposits it holds for gaming companies.
Even with the pandemonium afflicting regional banks this year, MVB Financial is outperforming the S&P Regional Banks Select Industry Index on a year-to-date basis. Additionally, perhaps aided past sports bettors, MVB added deposits inwards the first tercet months of 2023, while many rivals saw clients depart.
DraftKings and FanDuel are reportedly among MVB’s teetotum clients.
MVB Has Tech ‘Edge’
Alone, the bank’s iGaming/sports betting exposure gives MVB a growth experience seldom associated with little regional banks. But the companionship amplifies that proposition with its MVB Edge Ventures unit, which oversees the bank’s portfolio of fintech investments.
As MVB deepens its moat by edifice fintechs via Edge Ventures and invests in startup companies, the society has a front-row place into how to best serve up their niche clients and pretend them an invaluable partner in the industry,” added JPMorgan’s Alexopoulos.
Additionally, MVB’s smash is low-pitched because it operates just eighter branches crosswise Old Dominion State and Occident Virginia.
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