DKNG Stock Price: Draftkings Inc. pulls back after recent surge from analyst upgrades
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- NASDAQ:DKNG drops 0.51% on Wednesday after gaining 10% to start the week.
- Wall Street Analyst upgrades give Draftkings shares at least a 15% upside from current levels.
- Illinois Governor lifts ban on online customer sign-ups during COVID-19, adding to the bullish case.
NASDAQ:DKNG is a sure bet according to one Wall Street analyst who has set a new price target of $45 for the Massachusetts-based gaming company. Investors went all-in on the upgrade as shares jumped 10% on Tuesday before trading at relatively flat levels on Wednesday. Draftkings now has a market cap of nearly $14 billion which is double that of industry rival Penn National Gaming Inc. (NASDAQ:PENN) and is trading at well above both its 50-day and 200-day moving averages.
The novel coronavirus has had a huge impact on much of Draftkings’ core business as professional sports leagues and casinos have been closed for much of the pandemic. With the lifting of in-person registration by Illinois state governor J.B. Pritzker – the sports betting industry in the Prairie State should experience a substantial increase in online activity. Wall Street Analyst Mike Hickey who provided the $45 price target, also believes that with the opening up of Illinois – the state could be worth upwards of $700 million for Draftkings as one of the only online sportsbooks with its foot in the door.
Draftkings Stock
DraftKings is positioning itself well for the future of online sports betting. At a time where gaming companies are at their lows in terms of daily active users, the firm still had a near 25% year-over-year increase in quarterly revenues. The balance sheet is clean with zero debt and over $1 billion in cash. With the pending NFL season about to get underway in September, DraftKings will need to fend off Penn’s Barstool Sports Betting App that is aiming to take away some of the mobile betting marketspace.
- NASDAQ:DKNG drops 0.51% on Wednesday after gaining 10% to start the week.
- Wall Street Analyst upgrades give Draftkings shares at least a 15% upside from current levels.
- Illinois Governor lifts ban on online customer sign-ups during COVID-19, adding to the bullish case.
NASDAQ:DKNG is a sure bet according to one Wall Street analyst who has set a new price target of $45 for the Massachusetts-based gaming company. Investors went all-in on the upgrade as shares jumped 10% on Tuesday before trading at relatively flat levels on Wednesday. Draftkings now has a market cap of nearly $14 billion which is double that of industry rival Penn National Gaming Inc. (NASDAQ:PENN) and is trading at well above both its 50-day and 200-day moving averages.
The novel coronavirus has had a huge impact on much of Draftkings’ core business as professional sports leagues and casinos have been closed for much of the pandemic. With the lifting of in-person registration by Illinois state governor J.B. Pritzker – the sports betting industry in the Prairie State should experience a substantial increase in online activity. Wall Street Analyst Mike Hickey who provided the $45 price target, also believes that with the opening up of Illinois – the state could be worth upwards of $700 million for Draftkings as one of the only online sportsbooks with its foot in the door.
Draftkings Stock
DraftKings is positioning itself well for the future of online sports betting. At a time where gaming companies are at their lows in terms of daily active users, the firm still had a near 25% year-over-year increase in quarterly revenues. The balance sheet is clean with zero debt and over $1 billion in cash. With the pending NFL season about to get underway in September, DraftKings will need to fend off Penn’s Barstool Sports Betting App that is aiming to take away some of the mobile betting marketspace.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.