UPDATE: Morgan Stanley Upgrades DraftKings Inc. (DKNG) to Overweight

(Updated - January 26, 2022 3:45 AM EST)

Morgan Stanley analyst Thomas Allen upgraded DraftKings Inc. (NASDAQ: DKNG) from Equalweight to Overweight with a price target of $31.00.

The analyst comments "We forecast legal US sports betting & iGaming to increase from <$1.5B in 2019 to $20.6B in 2025 as more states legalize and spend per capita rises. Forecast DKNG to maintain top tier share, 24% in OSB and 21% in iGaming in 2025. Investors question LT profits, but other developed markets have shown 25-30%+ profits for operators at maturity, esp. those with a customer acq. advantage similar to DKNG's with its DFS database. Current valuation of 9x 2025e EBITDA does not reflect long-term margins or growth. Upside drivers include signs of profits in mature states, new product innovation and higher market share. Downside risks include higher losses, greater competition and lagging product innovation."

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 $19.32 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Jefferies Upgrades Kite Realty Group (KRG) to Buy
• ExxonMobil (XOM) PT Raised to $145 at Piper Sandler