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DraftKings
inventory’s current skid continued Friday despite the fact that the sports activities betting agency received over one other analyst.
Guggenheim analyst Curry Baker launched protection on
DraftKings
inventory with Buy score and $75 worth 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, referred to as iGaming.
“The momentum towards legalization appears to be building in almost every state (all but three have legislation in the pipeline), and the proposition to states/lawmakers is fairly straightforward,” he wrote. Online sports activities betting and on-line on line casino video games, “are popular products with consumers and serve as a new source of tax revenue for state budgets (especially as many state budgets have been hit hard by COVID).”
For DraftKings particularly, he factors to the corporate’s aggressive benefits pushed by its strong brand, proprietary know-how, main market share positioning, and monetary firepower to fund future progress.
Baker is much from the one analyst upbeat about DraftKings’ prospects. Of the 27 analysts overlaying DraftKings inventory which can be listed by FactSet, 18 have Buy or equal rankings. Only one has a Sell score. The imply goal worth is $72.96.
Write to Connor Smith at connor.smith@barrons.com
