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DraftKings (NASDAQ:DKNG) rose on Monday after analysts pointed to the upside for the stock if macroeconomic headwinds ease.
Needham helped the bull case on DraftKings (DKNG) on Monday by setting estimates for Q4 ahead of the consensus marks with both iGaming and online sports betting numbers trending strong. The firm has a Buy rating on DraftKings (DKNG) and price target of $20.
Meanwhile, Macquarie has DraftKings (DKNG) slotted as a top pick for 2023.
Analyst Chad Beynon and team believe there is a breakout opportunity for DKNG if industry volumes continue to improve.
“With FanDuel leading the market with SGP, in-play and overall market share, we expect for DKNG to close the gap in ’23 given improved tech, continued customer acquisition and strong engagement. We believe DKNG’s stock/estimates are close to worst case scenario and iCasino/Sports Betting legislation would be a positive for shares.”
Other factors seen working in the favor of DKNG include higher hold rates, a lower level of promotions, and reduced 2023 marketing spending by the sports betting player, which could all lead to better-than-feared losses in the near term.
Shares of DKNG were up 2.75% at 12:15 p.m. on Monday.
On Seeking Alpha, author JR Research thinks the risk-on stock market sentiment could propel shares even higher.
