DraftKings initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of DraftKings with a Buy rating and $60 price target, implying 36% upside. The analyst expects DraftKings to compound revenue at 20%-plus as it continues to benefit from “healthy growth” in existing states, as well as future state legalizations across online sports betting and internet gaming. While the stock is up 65% over the past nine months, DraftKingsis trading at a growth adjusted revenue multiple of 0.15 times, which is down 20% over the same time period, the analyst tells investors in a research note.