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DraftKings Snags Buy Rating from Guggenheim

Published 04/30/2021, 10:40 PM
Updated 04/30/2021, 10:41 PM
© Reuters.
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By Christiana Sciaudone

Investing.com --  DraftKings (NASDAQ:DKNG)'s got it going on. That's per Guggenheim, which initiated the company with a buy rating and price target of $75.

Shares of the online gambling company are up slightly, to about $57.82. 

"We believe DraftKings is well positioned to capture a significant share of the rapidly growing North American Online Sports Betting (OSB) and iGaming markets," analyst Curry Baker wrote in a note, according to StreetInsider. 

More and more states are legalizing online gambling, and DraftKings is expanding operations to new markets as opportunities open up. DraftKings went public via a special-purpose acquisition company in April 2020, and shares have nearly tripled since then, though the stock is below its record.

"Beyond the momentum towards legalization and the inherent tailwinds new states/markets offer, we see several other competitive advantages underpinning our positive outlook for DraftKings: a premier sports gaming brand, a market leading position in OSB and iGaming already, a flexible proprietary technology platform that is scalable and vertically-integrated, and plenty of financial firepower to fund future growth," Baker wrote. 

 

 

 

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