DraftKings named Top Pick in North America Gaming and Lodging at Morgan Stanley

Morgan Stanley added DraftKings back as the analyst’s Top Pick in North America Gaming and Lodging, telling investors that the firm sees positive catalysts alleviating recent pressure from the recent tax headlines following Illinois’ move to a higher, progressive tax structure. The firm sees capital return being announced along with the company’s Q2 release as free cash flow is still poised to inflect and the company reiterating guidance even with the headwind from Illinois, reflecting strong underlying market growth, says the analyst, who keeps a $51 price target and Overweight rating on DraftKings shares.