DraftKings Bull Sees Shift to Online Gambling Amid Pandemic

April 24, 2020, 12:33 PM

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”

To contact the reporter on this story:
Ryan Vlastelica in New York at rvlastelica1@bloomberg.net

To contact the editors responsible for this story:
Catherine Larkin at clarkin4@bloomberg.net

Steven Fromm

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