- The stock price of DraftKings Inc (NASDAQ: DKNG) increased by over 3.9% pre-market today. This is why.
The stock price of DraftKings Inc (NASDAQ: DKNG) increased by over 3.9% pre-market today. Investors are responding positively to a bullish research report.
Morgan Stanley analyst Ed Young assumed coverage on DraftKings with an “Overweight” rating. And Young assigned the company a price target of $31.
“We forecast legal US sports betting & iGaming to increase from <$1.5 billion in 2019 to about $21 billion in 2025 as more states legalize and spend per capita rises; Forecast DKNG to maintain top tier share, 24% in OSB and 21% in iGaming in 2025; Investors question LT profits, but other developed markets have shown 25-30%+ profits for operators at maturity, especially those with a customer acquisition advantage similar to DraftKings’ with its DFS database. The current valuation of ~7x 2025e EBITDA does not reflect long-term margins or growth; Upside drivers include signs of profits in mature states, new product innovation, and higher market share; Downside risks include higher losses, greater competition, and lagging product innovation,” wrote Young in a research note.
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