DraftKings (DKNG) is a company banking on the continued rise of online sports betting, but the OSB specialist has now been making moves which place it at the center of another very on-point trend.
Last week, DraftKings announced the launch of the DraftKings Marketplace which will offer sports-related nonfungible tokens (NFTs) and memorabilia. The platform will be the exclusive seller of sports-related NFTs from Autograph, the NFT platform co-founded by Tom Brady.
As you would expect with Brady at the helm, Autograph boasts a roster of top-notch sports stars, including Tiger Woods, Naomi Osaka, Derek Jeter, Wayne Gretzky, and Tony Hawk.
It’s a great idea, says Northland’s Greg Gibas.
“We believe this NFT marketplace launch, in addition to the exclusive partnership with Autograph, will act as a key differentiator for DKNG’s sports betting and iGaming platforms,” the 5-star analyst opined. “Given users / collectors will be able to buy, sell, and trade unique digital collectibles within the marketplace community from their DraftKings accounts, we view this initiative as the perfect / ideal way to attract new users (mostly sports fans) to DKNG’s offerings and drive continued use of the DKNG platform and offerings.”
Later in the summer season, Autograph will start the roll out of custom NFTs on the DraftKings Marketplace. Later on, the partnership could expand beyond sports to include “other verticals like entertainment, lifestyle, fashion, culture, pop culture, etc.”
Autograph has already formed a partnership with Lionsgate to “derive” NFT content from its movies and TV show portfolio which includes iconic titles such as Hunger Games, Rambo, Dirty Dancing, Blair Witch, and Mad Men, amongst others.
NFTs have taken off this year, with some digital artworks selling for a huge amount of money. Each NFT is unique and is stored and verified on a blockchain, the same tech which forms the basis of cryptocurrencies.
So, good news for DKNG, but what are the implications for investors? Gibas rates the stock an Outperform (i.e. Buy) along with a $70 price target. The analyst, therefore, expects the stock to climb by ~42% over the coming months. (To watch Gibas’ track record, click here)
Most of Gibas’ colleagues agree DraftKings is a Buy – 14, in fact. The other 6 reviews on record suggest to Hold, all culminating in a Moderate Buy consensus rating. At $65.88, the average price target suggests shares will be selling for ~34% premium a year from now. (See DKNG stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
