DraftKings Inventory Bought a New Purchase Ranking. It Nonetheless Fell.
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inventory’s latest skid continued Friday though the sports activities betting agency gained over one other analyst.
Guggenheim analyst Curry Baker launched protection on
inventory with Purchase ranking and $75 value goal. The inventory closed down 1.4% to $56.66. DraftKings shares have fallen about 24% from its March highs, that are simply in need of Baker’s recent goal.
He forecasts DraftKings can obtain long-term North American income starting from $7.6 billion to $10.6 billion when the net sports activities betting and on-line on line casino video games enterprise reaches maturity. He defines maturity as when 75% of the U.S. inhabitants can legally guess on sports activities on-line, and when 30% can play on-line on line casino video games, often known as iGaming.
“The momentum in direction of legalization seems to be constructing in virtually each state (all however three have laws within the pipeline), and the proposition to states/lawmakers is pretty simple,” he wrote. On-line sports activities betting and on-line on line casino video games, “are common merchandise with customers and function a brand new supply of tax income for state budgets (particularly as many state budgets have been hit arduous by COVID).”
For DraftKings particularly, he factors to the corporate’s aggressive benefits pushed by its sturdy model, proprietary know-how, main market share positioning, and monetary firepower to fund future progress.
Baker is way from the one analyst upbeat about DraftKings’ prospects. Of the 27 analysts masking DraftKings inventory which are listed by FactSet, 18 have Purchase or equal rankings. Just one has a Promote ranking. The imply goal value is $72.96.
Write to Connor Smith at [email protected]
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