DraftKings Bull Sees Shift to Online Gambling Amid Pandemic

DraftKings’s price target was raised to $25 from $20 at Craig-Hallum Capital Group, which expects a surge in interest for online sports gambling when games resume after the pandemic.

• The move reflects higher confidence in the sports-betting company, which will begin trading on Friday after completing a reverse merger with Diamond Eagle Acquisition Corp.
  • NOTE: Earlier, DraftKings Defies Odds to Go Public During Freeze on Sports
• Analyst Ryan Sigdahl wrote that suspended sport seasons “will result in a larger and more engaged audience when play resumes,” while social-distancing measures “will cause an accelerated shift online for sports betting and casino gaming”
• There may be “accelerated legalization of online gambling” from states that don’t have traditional casino tax revenue
• Buy rating, DKNG is “a great way to invest in the massive proliferation of legal online gaming”

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Steven Fromm

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