DraftKings (DKNG)

DraftKings (DKNG)

Postby winston » Mon Aug 10, 2020 1:22 pm

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DraftKings (DKNG)

DraftKings is a digital sports entertainment and gaming company, that provides online daily fantasy sports (DFS), online sports betting (OSB) and iGaming.

With the return of major league sports, the analyst community thinks additional growth is in store on top of the 219% year-to-date gain it has already posted.

Four-star analyst Mike Hickey, of Benchmark, cites its “leading brand and market share in DFS, a potentially massive and accelerating addressable market from OSB and iGaming state legalization initiatives and solid financial position,” as the key components of his bullish thesis.

DKNG is the dominant player in the DFS space, and it was one of the early leaders to emerge in OSB and iGaming. According to Hickey, both OSB and iGaming are “nascent markets that have the potential to be multi-billion dollar domestic opportunities.”

He also points out that DKNG boasts a “differentiated gaming engine that enhances operating margins and serves as a platform for future offerings, including in-game betting.”

Additionally, the market is expanding at a rapid pace, with sports betting currently legal in 23 states, representing 41% of the population.

OSB is legal in 14 states (24% of the population) and OSB is live or operational in 10 states, (15% of the population).

Given the legalization efforts in several parts of the U.S., Hickey estimates the online sports betting market could have an $18.6 billion-plus TAM. He added, “We expect legalization efforts to accelerate as cash-strapped state’s look for additional revenue sources to fill budget gaps from the pandemic-induced recession.”

When it comes to the iGaming market, Hickey believes that although legalization has been slower, it could achieve a $17.7 billion-plus TAM in the U.S.

“We estimate that four states have legalized iGaming, DKNG is operational in NJ, PA and WV, and we suspect the company is working with regulators to open iGaming in MI.

Similar to OSB, we believe legalization could accelerate given the current recession and looming state budget gaps,” the analyst explained.

Should 65% OSB legalization and 30% iGaming legalization be achieved by FY25, Hickey estimates DKNG will generate $3.7 billion in sales and $1.1 billion in adjusted EBITDA by FY30.

On top of this, the company’s balance sheet is solid, with its adjusted cash balance landing at roughly $1.3-$1.4 billion. Its estimated monthly cash burn would be around $15-$20 million if professional sports were halted.

With Hickey’s premium target multiple reflecting “the company’s elevated near-term revenue growth opportunity and margin potential,” the deal is sealed.

To this end, he rates the stock a Buy and has a $47 price target on it. The implication for investors? Upside potential of 38%.

Judging by the consensus breakdown, other analysts also like what they’re seeing. 11 Buys and a lone Hold add up to a Strong Buy consensus rating. At $47, the average price target is identical to Hickey’s.

Source: TipRanks
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Re: DraftKings (DKNG)

Postby winston » Mon Aug 10, 2020 9:48 pm

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Opportunity: This Stock Has Great-Long Term Potential

by Matt McCall

The company boasts more than $450 million in cash and no debt, with manageable cash burn when there are no major sports leagues running.

I would rather wait for a pullback into the $27.50 to $28 area.

Ultimately, I think $18 would be a great buy-and-hold spot.

That’s why I think $27.50 to $28 is an optimal buy-the-dip spot for bulls. On the upside, a move above $38 and downtrend resistance (blue line) could easily put the all-time highs in play at $44.79 — followed by $50.

Keep in mind, though, DraftKings is scheduled to report earnings on August 14.


Source: Investor Place

https://dailytradealert.com/2020/08/10/ ... potential/
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Re: DraftKings (DKNG)

Postby winston » Tue Aug 18, 2020 1:18 pm

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DraftKings: Investor Concerns Are Real, Fears Are Overblown, Says Analyst

The good news is that after two major college football conferences voted to postpone their fall seasons, others have indicated they will move ahead with own leagues.

The IRS plans to impose an excise tax on daily fantasy sports betting. Even if the rules do change, at the most draconian extreme they “would have a 3.2% cumulative impact on the price target.”

We forecast ~$700M of revenue in '21E, although we see upside from continued momentum in iGaming and OSB launches in TN and VA.

Rossenblatt: Buy rating on the stock along with a $60 price target.


Source: TipRanks

https://finance.yahoo.com/news/draftkin ... 40229.html
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Re: DraftKings (DKNG)

Postby winston » Wed Aug 26, 2020 8:25 am

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DraftKings (DKNG)

About two months after its April initial public offering (IPO), DraftKings was hit by a deluge of insider selling to the tune of almost $600 million, as founders and early investors locked in gains on their stakes.

The sheer mass of that insider selling weighed on the stock in June, playing a role in sending it lower for the month.

However, one of the company’s most recent filings with Securities and Exchange Commission (SEC) indicates co-founders Jason Robins, Paul Liberman, and Matthew Kalish recently bought shares in the company they started.

Giving the timing of that insider buying, it’s encouraging on multiple fronts.

First, it’s an indication the DraftKings higher ups expect NFL season will proceed as planned. Look at it like this. If you worked for a sports betting company and you knew the NFL wasn’t happening this year, would you buy the stock before that news became public? Probably not.

Second, insider buying at DraftKings is a sign management is convinced more states will legalize iGaming, sports betting, or both and that some of that liberalization will arrive in the coming months or next year.

Source: Investor Place
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Re: DraftKings (DKNG)

Postby winston » Wed Aug 26, 2020 1:38 pm

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DraftKings Well Positioned to Capitalize on the Rise of Online Sports Betting, Says Analyst

Several key takeaways from the talks:-
1) DKNG is effectively leveraging its DFS database and marketing analytics platform to generate attractive LTV/CAC economics as more states legalize sports betting and iGaming
2) DKNG's back-end regulatory platform is a key competitive advantage that allows it to gain state approval relatively quickly and build a scalable brand platform that is difficult for regional players to replicate
3) The SBTech product integration is trending nicely and will allow the company to enhance their in-game product offering and potentially increase product stickiness.”

DKNG’s Strong Buy consensus rating is backed by 11 Buys and 1 lone Hold.

The average price target is similar to Kelly’s, and at $47.10, represents possible upside of 20.5%.


Source: TipRanks

https://finance.yahoo.com/news/draftkin ... 54094.html
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Re: DraftKings (DKNG)

Postby winston » Mon Aug 31, 2020 9:40 pm

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Canaccord Genuity Stick to Their Buy Rating for DraftKings

Canaccord Genuity analyst Michael Graham (NYSE:GHM) maintained a Buy rating on DraftKings (NASDAQ:DKNG) on Sunday, setting a price target of $50, which is approximately 37.67% above the present share price of $36.32.

Graham expects DraftKings to post earnings per share (EPS) of -$0.55 for the third quarter of 2020.

The current consensus among 12 TipRanks analysts is for a Strong Buy rating of shares in DraftKings, with an average price target of $48.6.

The analysts price targets range from a high of $60 to a low of $34.

In its latest earnings report, released on 06/30/2020, the company reported a quarterly revenue of $70.93 million and a net profit of -$160.44 million.

The company's market cap is $27.19 billion.

Source: investing.com

https://www.investing.com/news/canaccor ... gs-2281194
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Re: DraftKings (DKNG)

Postby winston » Tue Sep 01, 2020 7:05 am

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Don't Bet Heavily on DraftKings Right Now

The charts and indicators of DKNG are looking a little risky for longs.

By BRUCE KAMICH

Source: Real Money

https://realmoney.thestreet.com/investi ... +Right+Now
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Re: DraftKings (DKNG)

Postby winston » Wed Sep 09, 2020 10:25 am

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Sept 9, 2020

BofA Sizes Up Market For DraftKings

by Chris Katje

The only negative for DraftKings Inc. (NASDAQ: DKNG) is its high valuation, while the valuation of Penn National Gaming (NASDAQ: PENN) is trailing sports betting rivals, according to BofA Securities.

The Analyst: Shaun Kelley reiterated a Buy rating on Penn National Gaming and raised the price target from $50 to $59.75.

Kelley initiated coverage of DraftKings with a Neutral rating and $40 price target.

Penn National has a lower valuation than rivals DraftKings and GAN Limited (NASDAQ: GAN), he said.

Penn shares trade at 5.6x enterprise value/revenue, lower than DraftKings' multiple of 15.7 and Gan’s 10.9x.

Penn’s 2020 stock gain of 112% trails DraftKings' 246% and Gan’s 122%, Kelley said.

The DraftKings Takeaways: “Valuation is the only thorn in this King’s crown,” Kelley said of DraftKings' strong performance. Shares are up 246% in 2020.

DraftKings has a built-in market from its daily fantasy business, which has 9 million users across 43 states, the analyst said.

The online sports and iGaming businesses have a strong presence in nine states, he said.

Benzinga’s Takeaway: Kelley is forecasting a $24-billion market for sports betting and iGaming by 2030.

Morgan Stanley recently downgraded both DraftKings and Penn National and said expectations for the sports betting and iGaming markets could be high.

The combined market size is likely to reach only $12 billion by 2025, compared to average estimates of $20 billion, according to Morgan Stanley.

The Penn National brand has over 100 million followers on social media.

Source: Benzinga

https://finance.yahoo.com/news/bofa-siz ... 41588.html
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Re: DraftKings (DKNG)

Postby winston » Fri Sep 25, 2020 2:08 pm

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DraftKings Is Poised for ‘Hyper-Growth.’ Why Its Stock Could Be Like Tesla, Amazon, and Netflix.

By Connor Smith

Macquarie Analyst Chad Beynon launched coverage on the stock (ticker: DKNG) on Thursday with an Outperform rating and a $65 price target.

He noted that the company has a strong market share in both online sports betting and U.S. real money iGaming, or online casino gambling.

Both of those markets can achieve compound annual growth rates greater than 50% through 2025.

For online sports betting, DraftKings has a market share of about 35% in the states where such gambling is legal.

Beynon thinks online sports betting will be live in about 23 U.S. states by the end of 2021, and 48 by 2025.

He argues DraftKings’ original mainstay—daily fantasy sports games where users win money by picking the best-performing players—exists as a kind of Trojan Horse to attract users to its even more lucrative online gambling alternatives.

Attracting fantasy customers to online sports betting can translate to more iGaming customers.


Source: Barron's

https://www.barrons.com/articles/draftk ... yptr=yahoo
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Re: DraftKings (DKNG)

Postby winston » Sat Sep 26, 2020 1:59 pm

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DraftKings Gets Buy Rating at Argus Amid Expansion of Online Gambling

Argus initiates coverage of the sports betting company with a buy recommendation.

by DAN WEIL

DraftKings (DKNG) shares rose Friday after Argus Research initiated coverage of the sports betting company with a buy recommendation and a share-price target of $65.

The stock also benefited from the Pac-12’s decision to resume its football season Nov. 6. That move, of course, gives DraftKings' customers more games on which to bet.

As for Argus’s analysis, “The online gaming industry is in the early stages of growth, with only 3% of gross gaming revenue in the U.S. generated online, compared to 45% in more mature online gaming markets such as the U.K,” Argus analyst John Eade wrote in a commentary.

“As more states loosen restrictions, we expect DraftKings to benefit from its market leadership. Investors have recognized the company's potential, and the shares have outperformed since the company went public in April 2020. Technical patterns are positive as well," Argus said.

DraftKings recently traded at $52.58, up 3.98%, and has skyrocketed 392% year to date.

"Though we don't expect DraftKings to post a profit this year or next, we do look for profitability in 2022 and solid growth over the remainder of the decade as the company benefits from economies of scale,” Eade said.

“We view DKNG as appropriate only for risk-tolerant investors as part of a diversified portfolio," the analyst added.

Last week, DraftKings agreed to become the official sports-betting, iGaming and daily fantasy partner for the New York Giants, making it the first NFL team to sign such an integrated deal.

DraftKings gets banners and brand placements across MetLife Stadium during Giants home games.

Source: TheStreet, Inc.

https://www.thestreet.com/investing/dra ... e+Gambling
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