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published in Blogs
Apr 30, 2021
Draftkings (DKNG, $56.88) gets buy rating at Guggenheim Securities

Draftkings (DKNG, $56.88) gets buy rating at Guggenheim Securities

Sports betting company DraftKings Inc.  shares got a buy rating at Guggenheim Securities that initiated coverage of the sports betting company with a $75 price target.

Guggenheim estimates suggest that the online sports betting and iGaming opportunity in North America will range between $7.6 billion and $10.6 billion when fully mature, with EBITDA margins of 30% or more. According to Guggenheim, DraftKings is "well positioned" to capture a substantial market share in North America.

The Arizona legislature passed a bill which would authorize fantasy sports and sports betting in the state. The bill is subject to approval from Gov. Doug Ducey (R.), as well as regulatory clearance.

Analyst Curry Baker said that  in addition to legalization and the tailwinds from new states/markets, there are several other competitive advantages driving the firm’s positive outlook for DraftKings.

Related Tickers: DKNG