One sports betting stock, is reaping the benefits of the NFL's return this week.

Shares of Penn National Gaming Inc. (PENN) rose close almost 12% Thursday, sitting at $65.021at 1 EDT. The increase comes after the stock was given a target of $80 a share by Rosenblatt securities.

Penn National purchased 36% of Barstool Sports for $163 million in January, and its stake in the media company will increase to 50% in three years. Penn National is set to test the Barstool Sportsbook app in Pennsylvania on Sept. 15, three days before it’s expected to launch officially.

"If PENN can leverage Barstool’s brand with a best-in-class and differentiated app ... there is potential for PENN to be the market leader," analyst Bernie McTernan said.

Barstool has turned into one of the country’s most popular media brands with an extremely passionate fanbase. According to Penn National, 62% of dedicated Barstool fans bet on sports, and 44% of those gamblers bet at least once a week. The average bet of 41% of the gamblers is more than $50.

Sixty-five percent of Barstool’s audience is between 21-44 years of age. Last year In 2019, Barstool Sports generated nearly $100 million in revenue.

There was $13 billion bet legally on the NFL in the United States last year, the American Gaming Association has reported. Five more states have allowed legal sports gambling since the end of 2019, bringing the total to 18.

The NFL season kicks off this week while the NBA playoffs and MLB regular season continue throughout September.

PENN reached $30.87 a share when the acquisition of Barstool was announced on Jan 29. Since falling to a low of $4.52 a share on March 18, the stock has soared over the last six months.

Dave Portnoy Barstool Sports
David Portnoy of Barstool Sports hosts The Pool After Dark at Harrah's Resort on Saturday, May 11, 2019 in Atlantic City, New Jersey. Tom Briglia/Getty Images
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