A Close Examination of DraftKings in the Lead-Up to the NFL Playoffs
Shares of DraftKings Inc DKNG have garnered significant attention in the midst of the NFL playoffs.
The Current Scenario Involving DraftKings and Anticipated Market Growth
As per BMO Capital Markets, the Boston-based company boasts the largest market share and is poised for substantial growth in the near future.
New Insights from the DraftKings Analyst
The DraftKings Analyst: Brian Pitz has commenced coverage of DraftKings with an Outperform rating and a price target of $43.
The Encouraging Outlook for DraftKings
The DraftKings Thesis: The company holds the top position in the legal North American online gambling market, with projected growth from approximately $20 billion in early 2024 to $30 billion by 2028, solely accounting for the existing states, Pitz stated in the initiation note.
“We see a vast opportunity as more states legalize, allowing DraftKings to dramatically expand its footprint and profitability,” the analyst wrote. “Early states are also becoming profitable faster, giving confidence in the foundational economics of the DraftKings model ahead of more legalization and expansion.”
Pitz also projected that the U.S. market could exceed $100 billion “if every state legalized OSB and iGaming.”
Current Stock Response for DKNG
DKNG Price Action: DraftKings’ shares had climbed by 1.55% to $34.13 at the time of publication on Tuesday.