DraftKings Inc. (NASDAQ: DKNG) has been making waves in the world of digital sports entertainment and gaming since its inception in 2012. With operations across 17 countries, DraftKings offers a comprehensive platform for multi-channel sports betting and gaming technologies.
As Bloomberg reports, thirty-two ratings firms have recently covered the company with a consensus recommendation of “Hold.” While five equities research analysts have rated the stock with a sell rating, three have assigned a hold rating, and twelve have issued a buy rating on the company. The average one-year price objective among analysts that have issued a report on the stock in the last year is currently at $24.80.
Recent activity by large investors highlights growing confidence in DraftKings’ future. Armstrong Advisory Group Inc., Proficio Capital Partners LLC, Barrett & Company Inc., Baystate Wealth Management LLC, and Harvest Fund Management Co. Ltd are just some examples of institutional investors and hedge funds who have recently acquired shares within the company.
DraftKings’ rapid growth can be attributed to being an early adopter of iGaming products or playing games through online casinos via computers or mobile phones. The company operates iGaming through its namesake brand across five states and Golden Nugget Online Gaming in three states.
Attracting investors from various institutions reflects their trust in DraftKings as a promising stock investment as digital sports entertainment continue to grow significantly during the pandemic era where most people stay at home for leisure activities like online games and streaming services.
With a network spanning business relationships across North America, Europe, South America as well as Asia-Pacific regions that will support its entry to new markets, plus featuring various deals with National Hockey League (NHL), Turner Sports among others give sound reasons to consider buying Draftkings shares despite getting marked only with “hold” recommendations from rating companies due to present-time instability amidst global economic uncertainties.
DraftKings Receives Positive Ratings and Increased Target Price from Research Firms, Poised for Long-Term Growth
DraftKings, a digital sports entertainment and gaming company, has recently seen an increase in target price and positive ratings from several research firms. Craig Hallum increased their target price from $21.00 to $27.00 while giving the company a “buy” rating on February 17th, supported by UBS Group who raised their rating also to “buy” and uplifted the target price for DraftKings from $19.00 to $30.00 on Monday for the same month.
Argus chimed in with a favorable outlook, raising DraftKings from a “hold” rating to a “buy” rating on March 7th with a target price of $22.00 for the firm.
However, Roth Mkm had a less optimistic view as they upped their price objective on DraftKings but still gave them a “sell” rating in May, increasing it marginally from $15.00 to $18.00.
Finally, Truist Financial reaffirmed positive news for the sports betting company by boosting their targeted price from $23.00 to $26.00 in another research note released this year.
As of Friday’s opening stock value at $23.69 per share, DraftKings has seen significant market expansion over the past year with a fifty-two week high of $26.41 per share and low of $10.52 per share during this period.
With limited resources available to consumers due to social distancing measures introduced earlier this year, many are turning towards digital sources like online gaming and gambling applications as alternative options for entertainment amid global uncertainty.
While investors remain cautiously optimistic about these market movements given recent fluctuations caused by ongoing COVID-19 concerns worldwide – insiders have projected that DraftKings is poised for long-term growth resulting in potential yield revenues in the years to come.
If proponents’ sentiments hold true in real-time markets, those tracking DraftKings and the sports betting industry will be rewarded highly.
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