BMO Capital analyst Brian Pitz has reiterated their bullish stance on DKNG stock, giving a Buy rating yesterday.
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Brian Pitz’s rating is based on DraftKings’ strategic acquisition of Railbird Technologies, which provides the company with the necessary licenses to enter the prediction market space. This move is seen as a positive step to mitigate concerns about potential disruptions from emerging prediction markets that operate under federal regulations, unlike the state-regulated online sports betting industry.
Furthermore, the acquisition positions DraftKings to expand its total addressable market across the United States, including key offline states such as California and Texas. Although there are questions regarding the response of state partners and the absence of sports-related event contracts in the initial launch, the acquisition is viewed as a net positive. Pitz believes that DraftKings is well-prepared to navigate these challenges and emerge as a leader in the prediction market space, justifying the Buy rating.
In another report released yesterday, Truist Financial also assigned a Buy rating to the stock with a $33.60 price target.
DKNG’s price has also changed slightly for the past six months – from $32.440 to $33.620, which is a 3.64% increase.