DraftKings (NASDAQ:DKNG) inventory is following other gaming equities take down today. But the sportsbook manipulator is on the receiving terminal of to a greater extent living from the sell-side.
In a take note to clients today, Craig-Hallum psychoanalyst Ryan Sigdahl reiterates a “buy” rating on DraftKings, piece boosting his toll direct on the carry to $70 from $60. That implies upside of almost 17 percent from current levels.
DraftKings’ all-time high is $74.38, which was place in tardily March. The Wall Street consensus price forecast on the figure is $70.85.
DraftKings is the only pure-play sports betting nominate currently uncommitted in the US equity market place — a trait long highlighted by bullish analysts. The stock up is upwards nearly 30 percent year-to-date and 10.71 percent o'er the past month, with that recent ascent powered inwards big component by the comer of football game season.
Football Fantastic Catalyst for DraftKings Stock
Football is the most wagered-on sportswoman inward the US, and as such, the pop of the 2021 season is fueling upside for sports betting equities.
Sigdahl, the Craig-Hallum analyst, says football game wagering volumes are already topping “lofty” forecasts. Specific to DraftKings, the psychoanalyst sees that operator as best-positioned to do good from football betting enthusiasm. He noted the society could steal marketplace portion out from competitor FanDuel this season.
FanDuel, a unit of Flutter Entertainment, is the largest online sportsbook manipulator inward the US, spell DraftKings is locked in an progressively vivid battle for the 2d recognize with BetMGM.
Data confirms that football game is so stuff for betting operators. The feature drives an estimated 35 percent to 40 percent of yearbook revenues for sportsbooks, with a 3rd of those yearly sales arriving inward the 4th quarter.
One spot analysts and investors will sure follow monitoring when third- and fourth-quarter earnings reports pop out rolling inwards is how often betting companies are disbursement on client acquisition. It’s a relevant point, because some of the marquise names inwards the online wagering space aren’t yet profitable. That’s of import for DraftKings investors, because the troupe may not grow profitable on the base of earnings before interest, taxes, depreciation and amortization (EBITDA) until 2023 at the earliest.
Plenty of Enthusiasm for DraftKings Stock
Since comely a standalone public troupe in April 2020, DraftKings became a Wall Street favorite, a fact that remains straight today. Twenty-six analysts compensate the company, 18 of which make bullish or really bullish ratings on the shares.
The manipulator is a consistent raiser of revenue guidance, and some analysts are already speculating that with a warm football game handle, DraftKings could leaven third-quarter and full-year sales estimates.
Much of investors’ enthusiasm for DraftKings revolves around increasing state-level legitimation of internet casinos and sports betting. They also line the subsequent revenue encouragement that comes with a more hospitable revenue environment. Additionally, the fellowship has a warm equilibrize weather sheet and is showing a willingness to make acquisitions to expand its top out railway line profile.