DraftKings (DKNG) Receives New 'Overweight' Rating at Wells Fargo

Daniel Politzer at Wells Fargo initiated coverage on DraftKings Inc. (NASDAQ: DKNG), a digital focused sports betting, iGaming, daily fantasy sports and entertainment company, with an Overweight rating and $73 price target.

The brokerage mentioned four key aspects reflecting its favorable view of the company:

(1) The company’s position as a leading platform in USSB/iGaming, which is viewed by Wells Fargo as the most attractive growth vertical in Gaming,

(2) potential upside to its current 17% iGaming share as the company integrates GNOG, fine-tunes its product, and targets casino-first customers,

(3) systematic buildup of a highly differentiated, full-scale sports betting and media offering

(4) strong cross-sell capabilities (50%+ OSB users into iGaming).

The brokerage expects net revenue of $1.28 Billion (vs. guidance of $1.21-1.29 Billion), $1.85 Billion (vs. the Street’s $1.77 Billion), $2.61 Billion (vs. the Street’s $2.42 Billion) for 2021, 2022, 2023, respectively.

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