DraftKings (DKNG) - Get Reportshares on Monday got another boost from the analyst community after Cowen upgraded the stock to outperform from market perform with a $70 price target.<\/p>\n
The firm made the upgrade due to the company's valuation and the prospect of more states legalizing sports gambling.<\/p>\n
At last check DraftKings shares were trading 1.7% higher at $57.60.<\/p>\n
The pace of state legalization is \"the primary top-line catalyst and share-price driver for DraftKings,\"according to analyst Stephen Glagola.<\/p>\n
By the end of 2022 the Boston sports-gambling company could be live in states that represent half the U.S. population, the analyst said.<\/p>\n
In New York, where sports gambling was recently legalized, the analyst sees DraftKings as having a \"high probability of achieving market access,\" by the first quarter of next year, Glagola wrote..<\/p>\n
That would come as the state adopts a \"potentially high tax model\" that will drive higher barriers to entry for DraftKings' potential rivals, he said.<\/p>\n
Last week, DraftKings was initiatedbuy with a $75 price target at Guggenheim.<\/p>\n
DraftKings was \"well positioned\" to take significant market share in North American markets, according to Guggenheim analyst Curry Baker. <\/p>\n
\"Beyond the momentum towards legalization and the inherent tailwinds new states\/markets offer, we see several other competitive advantages underpinning our positive outlook for DraftKings,\" Baker said.<\/p>\n
Last week,DraftKings agreed to pay at least $50 million over three years to distribute a sports and pop culture podcast from former ESPN (DIS) - Get Reporthost Dan Le Batard.<\/p>\n
The Boston company will make money on the deal by selling advertising, as well as sub-licensing the podcast to radio stations and other audio providers, The Wall Street Journal reported.<\/p>\n
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DraftKings Climbs on Valuation, Gambling-Legalization Prospects - TheStreet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" DraftKings (DKNG) - Get Reportshares on Monday got another boost from the analyst community after Cowen upgraded the stock to outperform from market perform with a $70 price target. Continue reading