UPDATE: Roth Capital Starts DraftKings Inc. (DKNG) at Sell
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Roth Capital analyst Edward Engel initiates coverage on DraftKings Inc. (NASDAQ: DKNG) with a Sell rating and a price target of $41.00.
The analyst comments "We initiate coverage on DKNG with a Sell rating as the only broker with a negative outlook. While we're bullish on U.S. online gaming, we don't believe 70% market share for the three leaders (Fanduel, BetMGM, DraftKings) is sustainable and see DraftKings conceding market share as mid-tier operators ramp customer acquisition and better cross-sell legacy casino customers. While DraftKings' Daily Fantasy Sports (DFS) products offer early market share advantages, we see benefits fading as markets mature."
Shares of DraftKings Inc. closed at $48.88 yesterday.
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