DraftKings Inc. (DKNG), which deals with fantasy sports, online betting, and internet gambling, has received an updated recommendation from Needham & Company. Analysts predict that DraftKings will become a major player in the fast-growing market for Internet-based sports betting.
Needham raised its DraftKings price target to $ 81 on Monday, April 26, and set a buy recommendation. As online sports gambling becomes legal in the United States, DraftKings is likely to benefit in particular. According to Needham, DraftKings could become the leader in this new market, whose market potential is estimated at around $ 35 billion.
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In the wake of the coronavirus, forced isolation, the closing of many businesses, and the subsequent loss of tax revenues to state budgets, state leaders are looking for ways to pay for their losses. Some states have actively pushed to legalize online gambling. Currently, online gambling is permitted in almost half the US states, with mobile betting allowed in 11 states. New York legalized several types of online betting in April, and mobile betting is expected to open in the state by 2022.
The diversification of the offer gives DraftKings Inc. (DKNG) an advantage over the competition. Even with minimal legalization of online gambling, the company can offer something to users. The company’s portfolio includes applications for fantasy sports, sports betting, and more conventional entertainment, like poker or slot machines. DraftKings has an opportunity to be present in the widest geography. This is what allows the company to claim leadership in the industry.
DraftKings Inc. (DKNG) has advanced 0.08% at $59.18 in after-market trading hours on the last check Tuesday. During the previous trading session, shares of DKNG closed at $59.13, a loss of -0.17%. The stock prices ranged from 58.88 to $62.27. The company traded 13.37 million shares below its daily average of 15.96 million shares over the past 100 days. Since the beginning of June, DKNG shares have gained by 6.14%, while they have lost -7.03%. The company has a price-to-book ratio of 8.52.