Buy the dip on DraftKings, says JPMorgan

JPMorgan keeps an Overweight rating and $55 price target on DraftKings, saying investors should buy today’s 7% dip in the stock. The decline was largely attributable to multiple headlines simultaneously causing investor concerns, including reports that NCAA working to ban prop bets on college athletes and that New Jersey regulators filed to raise the tax on online sports betting adjusted gross revenue from 13% to 30% and the tax on iGaming adjusted gross revenue from 15% to 30%, the analyst tells investors in a research note. The decline in the stock price largely seems overdone however, the firm added.