- The stock price of sports betting platform DraftKings Inc (NASDAQ: DKNG) increased 3.65% today following several price target increases from a number of analysts. These are the details.
The stock price of sports betting platform DraftKings Inc (NASDAQ: DKNG) increased 3.65% today following several price target increases from a number of analysts. The most bullish case was provided by Credit Suisse — which initiated a price target of $76. Credit Suisse analyst Benjamin Chaiken also assigned an “Outperform” rating to the DraftKings stock. This represents about a 50.2% potential upside to the current stock price.
Chaiken cited the pace of legalization accelerating in the U.S. while more states are turning to sports betting for increasing tax revenue during the pandemic. And Chaiken also noted that DraftKings has signed marketing deals with ESPN (owned by Disney), the New York Giants, and the Chicago Cubs. Those deals should help the company increase its market share.
Needham reported that the sports betting and gambling industry could hit annual sales of $58 billion. In August, DraftKings reported Q2 2020 GAAP revenue of $71 million compared to $57 million during the same period in 2017. This means that DraftKings still has plenty of room for growth.
Several other financial firms also offered their ratings for DraftKings today. This is a summary:
— Oppenheimer – “Outperform” rating — price target increase from $55 to $65
— Benchmark – “Buy” rating – price target increase from $57 to $60
— Deutsche Bank – “Hold” rating – price target of $48
Disclosure: I have a small position of DraftKings in my stock portfolio