Oppenheimer Handicaps DraftKings Inc. (DKNG) March Madness Opportunity

Oppenheimer analyst Jed Kelly reiterated an Outperform rating and $80.00 price target on DraftKings Inc. (NASDAQ: DKNG) on the belief that the NCAA Tournament set to tip-off on 3/18will provide a GGR opportunity of $101–183M with a base case of $142M leading to the company generating $43M in GGR.

The analyst stated "Our base-case assumptions are based on: 1) $294M NJ handle (2.5x the '21 Super Bowl); 2) 6% hold; 3) NJ GGR per adult of $2.5 vs. $1.4 in '19 4) non-NJ GGR per adult of $1.7, 15% higher than NJ first-year levels, consistent with average outperformance of non-NJ states in their first consecutive
Sept.–Dec.; 5) DKNG has 30% market share. We note that our base case assumes a hold 350bps lower than the '19 NCAA Tournament in NJ on increased incentives given higher competition, which we believe could suggest upside to our base case estimate."

For an analyst ratings summary and ratings history on DraftKings Inc. click here. For more ratings news on DraftKings Inc. click here.

Shares of DraftKings Inc. closed at $69.01 yesterday.

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