DraftKings Analyst Bets Market Can Exceed $100B 'If Every State Legalized iGaming'
Portfolio Pulse from Priya Nigam
BMO Capital Markets analyst Brian Pitz initiated coverage of DraftKings Inc (NASDAQ:DKNG) with an Outperform rating and a price target of $43. Pitz projects the legal North American online gambling market to grow from $20 billion in early 2024 to $30 billion by 2028, considering only the existing states. He suggests that the U.S. market could exceed $100 billion if every state legalized online sports betting (OSB) and iGaming. DraftKings, with the largest market share, is expected to expand its footprint and profitability as more states legalize these activities. Shares of DraftKings rose by 1.55% to $34.13.
January 09, 2024 | 3:34 pm
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POSITIVE IMPACT
DraftKings Inc received an Outperform rating and a $43 price target from BMO Capital Markets analyst Brian Pitz, who sees significant growth potential in the online gambling market.
The Outperform rating and optimistic market growth projection by a reputable analyst are likely to instill confidence in investors, potentially driving up the stock price in the short term. The specific mention of DraftKings as a market leader and the positive outlook on the industry's growth, especially if more states legalize online gambling, support a bullish sentiment for the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100