Analyst: DraftKings Could Have a More Than 50% Upside
Credit Suisse announced this morning it is beginning analyst coverage of sports betting enterprise DraftKings (NASDAQ: DKNG) for the first time, according to a report by Seeking Alpha. The bank’s research note said, “We initiate coverage of DraftKings with an Outperform Rating and $76 Target Price,” an over 55% upside from Friday’s closing price of $48.82.
The research note goes on to identify four factors as the foundation for Credit Suisse’s outperform bull call. These include the structure of the American sports betting business, in which features like limited licenses “should lead to higher than expected market share,” and COVID-19’s tendency to push revenue-hungry states to fast-track legalization of online sportsbook activity.
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