While actually betting on DraftKings (NASDAQ:DKNG) is a mixed proposition at best, betting on the company is looking more promising. Those who made such a bet won big today as DraftKings closed its Monday trading session up 8.29%. Analyst optimism and a new pending deal gave DraftKings a major leg up.
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The analyst optimism part was supplied by, among others, BTIG Research. BTIG noted that DraftKings was likely to get a boost from “favorable fundamentals in 2023,” including an array of benefits like “…an increasing parlay mix” and “…improved efficiency.” The several tailwinds working together could, BTIG posited, really drive DraftKings forward sufficiently to make it worth its new title: a top pick for the second half of 2023. It wasn’t alone, either; Oppenheimer analysts pushed the price target from $30 to $36 thanks to growing user engagement figures. Morgan Stanley maintained its “overweight” rating as well.
Granted, there’s one major problem afoot in economic uncertainty. With inflation still driving up prices on everything from food to cars and beyond, the amount of discretionary income users will have to bet on their favorite team might be, at best, minimal. However, that won’t be universal. It seldom is. And with some folks doing better than others, those might be the ones who help keep DraftKings’ championship hopes alive in the market.
Analysts find DraftKings stock a good bet, calling it a Moderate Buy supported by 17 Buy ratings, eight Holds, and two Sells. However, it’s not a great bet thanks to its 0.03% downside potential on an average price target of $28.85.
