Needham & Company Starts DraftKings Inc. (DKNG) at Buy, Sports Betting Market Seen Between $42-$58B Per Year
- Nasdaq 100 futures hit record high ahead of business activity data
- Bitcoin (BTC) Recovers to $34,000 as Analysts Insists Crypto Winter Won't Repeat Again
- Cyclical currencies lead after dust settles on Fed
- Xpeng (XPEV) Leaps After Receiving a Green Light From Regulators to Raise Up To $2 Billion in Hong Kong IPO
- 'A Stampede for Clean Energy': Amazon (AMZN) Commits to Buy More Renewable Energy, Becomes the Top All-Time US Corporate Buyer
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Needham & Company analyst Brad Erickson initiates coverage on DraftKings Inc. (NASDAQ: DKNG) with a Buy rating and a price target of $70.00.
The analyst commented, "We view DKNG as one of the leading beneficiaries as online sports betting and gambling take off in the U.S. - an opportunity we size between $42 and $58 billion annually longer-term. We expect the regulatory tailwind to persist and believe online providers' access to data creates a structurally better user experience vs. brick & mortar. Thanks to DKNG's data-centric approach to customer acquisition and its leading brand & marketing approach, we believe the company could regularly exceed top-line forecasts, although near-term, we suspect EBITDA expectations could be too aggressive. We initiate coverage with a $70 target based on an EV/revenue multiple of 24x our '22 estimate. Risks are mainly COVID's effect on sports and competition, while valuation will be a debate for profit-focused investors, less so for growth-oriented investors."
Shares of DraftKings Inc. closed at $55.74 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham & Company Positive on WWE (WWE) With Company in Process of Selling Offshore OTT Network Rights, Sees Co. Likely Sold Some Day
- UPDATE: Raymond James Upgrades Huntington Bancshares (HBAN) to Strong Buy, 'Concerns Overblown'
- Needham & Company Downgrades SharpSpring Inc (SHSP) to Hold, Following Acquisition
Create E-mail Alert Related CategoriesAnalyst Comments, Hot New Coverage, New Coverage
Related EntitiesNeedham & Company, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!