DraftKings Is A Sports Betting Winner Set To Defy Macro Headwinds, Analyst Says
Portfolio Pulse from AJ Fabino
Bank of America Corp (BAC) Global Securities has upgraded DraftKings Inc (DKNG) from a Neutral to a Buy rating, increasing the price target from $26 to $32. The upgrade is based on DraftKings' product and revenue momentum, which are nearing a critical point that may lead to significant improvements in margins and profitability. BAC's new EBITDA estimate for DraftKings for 2025 is 17% above the consensus, with an additional 15%-25% upside potentially on the cards. DraftKings' market share in online sports betting has grown from 21% to 29% in the past year.
July 12, 2023 | 4:14 pm
News sentiment analysis
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NEUTRAL IMPACT
Bank of America has upgraded DraftKings from Neutral to Buy, indicating a positive outlook for the company. This could potentially reflect positively on Bank of America's own reputation and credibility as a financial analyst.
While the news is primarily about DraftKings, Bank of America's role as the analyst providing the upgrade could potentially reflect positively on its own reputation and credibility. However, this is unlikely to have a significant impact on Bank of America's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
DraftKings has been upgraded by Bank of America from Neutral to Buy, with a price target increase from $26 to $32. This is due to the company's product and revenue momentum, which are expected to lead to significant improvements in margins and profitability.
The upgrade by Bank of America, along with the increase in price target, indicates a positive outlook for DraftKings. The company's growing market share in online sports betting and expected improvements in margins and profitability are likely to have a positive impact on its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100