DRAFTKINGS AND SPORTS BETTING
DraftKings $DKNG+3.2%, a well-known sports betting platform, recently received a positive review from Oppenheimer's research department. Analyst Jed Kelly expressed confidence in the company's growth potential, despite the stock's approximately 2% decline this year.
- New Customer Recruitment: Kelly believes $DKNG+3.2% has an opportunity to become a leader in recruiting new customers, particularly those who currently participate in illegal betting or betting outside the US. He believes that $DKNG+3.2% can leverage its experience in the daily fantasy sports market, where it has already established itself as a leader, to lead the transition of illegal sports betting in the US to licensed domestic operators.
- Market Potential: It is estimated that approximately $150 billion a year is wagered illegally or abroad in the US. Thus,$DKNG+3.2% has significant potential to capture a portion of this market and transform it into a legal and regulated segment.
- Target Price: Oppenheimer has set a target price of $55 on DraftKings stock, representing a potential upside of nearly 60% from current levels. This bold valuation reflects optimism about $DKNG'+3.2%s ability to expand and gain market share, despite the decline in the stock price to date.
DraftKings is seen as a key player in the growing US sports betting industry. If the company is able to meet expectations and attract new customers, its value could rise significantly, making this stock an attractive investment opportunity for investors looking for growth potential.
The stock looks expensive, plus it's not a stock I want in my portfolio as I don't like the business that much.
The company is not my cup of coffee, but I have been following it for a long time. I have it on my watchlist and occasionally look at its chart. It has earned a very solid valuation over the past few years. If someone was buying at low prices, I would quietly consider selling. The company is pretty expensive for me right now.