DraftKings shares ‘easier to buy’ with surcharge flip, says Jefferies

Jefferies believes DraftKings’ decision to redirect from a surcharge, given the position of competitors and the mixed view from the Street, is likely to generate a positive reaction in the shares. The firm believes online gambling operators can mitigate reasonable tax increases gradually over time, which should be the case for DraftKings. The decision “simplifies the path forward for the market and the stock,” says Jefferies, which calls DraftKings a top pick in a “favored group.” It views the stock as “easier to buy” given the surcharge decision and keeps a Buy rating on the name with a $54 price target.