JPMorgan analyst Joseph Greff upgraded DraftKings (DKNG) to Neutral from Underweight with an unchanged price target of $26. The shares are down in response to Penn Entertainment’s (PENN) agreement with ESPN, which is causing a negative reaction on increased potential competition and promotional pressure, the analyst tells investors in a research note. At current levels, the firm sees DraftKings’ valuation as “more in balance” and believes a Neutral rating is more appropriate than an Underweight one. Still, the valuation is expensive, the firm contends.
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