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Investing.com — DraftKings (NASDAQ:DKNG) rose 5% after getting a Street-high price target amid a battery of price target increases.
The company reported earnings last week with sales slightly beating expectations while a loss came in greater than estimated.
Nonetheless, it was well received by the Street.
“DKNG’s strong report and raised guidance reinforces our view that concerns and stock weakness due to upcoming lock-up expirations will prove overdone,” said Needham analyst Brad Erickson. He cited stronger growth and profitability visibility.
Needham reiterated a buy and a $70 price target on the company, and raised its revenue estimate for 2021 to $802.5 million from $738.2 million, according to StreetInsider. DraftKings shares currently trade around $45.
Loop Capital initiated coverage on the gambling stock with a buy rating and price target of $100, the highest by far of any analyst, according to StreetInsider. The next highest is Credit Suisse (SIX:CSGN), with $76.
“We want to own one of the clear leaders in online gambling as new US states unlock. We raise our revenue and EBITDA estimates for ’20, ’21, and ’22 and remain Buy-rated,” Needham’s Erickson said, according to StreetInsider.
Morgan Stanley (NYSE:MS) and Northland Capital Markets also bumped up their price targets.
