The SMID Point

Research evidence excerpt

The SMID Point

26.9% prior and ~27.8% guidance midpoint). With updated est. and a 15.5x NTM

EBITDA multiple (raised from 13.5x on better-than-expected demand,

consolidated distribution network, and share gains) we raise our TP to $52.

Neutral | Target price US$52.00

Anthony Pettinari

Bull/Bear: Trex Company

Industry

North America Gaming - Prediction Markets Facing a String of Court Losses to

States

On Monday, we hosted a call with sports betting and prediction markets

regulatory expert Daniel Wallach, founder of Wallach Legal LLC. In the

conversation, we spoke about new developments and revisited topics in the

regulatory environment for prediction markets following Kalshi’s preliminary-

injunction loss in New York. Legal losses by Kalshi would lessen the perceived

overhang against both DKNG and FLUT, as prediction markets have been seen as,

at best, significant encroachers on traditional OSB products, and at worst

existential threats. However, both companies see prediction markets as material

and overwhelmingly incremental growth opportunities, while we believe the

answer is somewhere in-between.

James Hardiman | Monique Pollard | Sean Wagner | Jamie Bass

North America Telecommunications Infrastructure - New York State Set to Ban

Data Center Construction for Up to a Year

WSJ reported this morning (link) that NY Gov. Kathy Hochul is set to sign an

executive order that will temporarily ban large construction of new data centers for

up to a year to give the state time to create data center regulations that can help

the environment and energy grid. The headlines and development raise the risk

profile around future data center development, especially if other states and

municipalities more aggressively slow or pause data center development. More