Online gambling and sports betting could send DraftKings (DKNG) to $100 share.
That’s according to Loop Capital analyst Daniel Adam who now has a buy rating on the stock because of a $30 billion addressable sports wagering and gaming market. In addition, he says DKNG is the play on the online sports better boom and could see big growth ahead, adding that, “We believe DKNG will emerge the clear share leader in online gaming given its powerful brand, early mover advantage and digital-first DNA,” as noted by Benzinga.
In addition, “DraftKings is in 10 states, which is about 20% of the U.S. population. Adam said the company can ‘increase penetration in both existing and new markets’ and models DraftKings’ around 49% average market share in 2021,” they added.
At the moment, DKNG trades at $49.24 and is just beginning to push higher.
While we’re excited about a $100 price target on the stock, our initial target price here is prior resistance at $65 a share.