DraftKings bid for PointBet U.S. ‘modestly positive surprise,’ says Jefferies

After DraftKings (DKNG) announced it has submitted a proposal to acquire PointsBet’s (PBTHF) U.S. business, Jefferies analyst David Katz called the news “a modestly positive surprise.” The strategic and financial logic is “clear” from DraftKings’ perspective, though the firm sees a “realistic possibility” that the original bidder, Fanatics, could revisit with a higher bid, the analyst tells investors. Jefferies, which adds that it believes the bid supports its expectation for accelerating M&A activity in the sector, and calls that a “positive,” has a Buy rating and $35 price target on DraftKings shares.