Analysts at UBS have awarded Draftkings Inc (NASDAQ:DKNG) a ‘Buy’ rating with a $30 price target as the sports gambling company penetrates new markets.
Following strong first-quarter results earlier in May, the broker raised its price target for DraftKings from $19, saying expansion into new markets should fuel the company’s growth.
DraftKings’ stock traded 3.4% higher at $24.11 in Monday pre-market trade.
The company reported 1Q revenue of $769.7 million, up from $417 million a year earlier and topping Street expectations of $704 million. Its loss was $0.87 per share, narrower than $1.07 last year.
Following the launch of its online Sportsbook product in Massachusetts on March 2023, the company noted that is live with mobile sports betting in 21 states that collectively represent approximately 44% of the US population.
It also said it expects to launch its Sportsbook product in Kentucky and Puerto Rico jurisdictions pending licensure and regulatory approvals.
Kentucky and Puerto Rico have authorized mobile sports betting and collectively represent approximately 2% of the US population. DraftKings expects to launch its Sportsbook product in these jurisdictions pending licensure and regulatory approvals.
In 2023, DraftKings said 12 states that collectively represent approximately 24% of the US population have either introduced legislation to legalize mobile sports betting or introduced bills that may result in sports wagering referendums during an upcoming election. In addition, five states that collectively represent approximately 14% of the US population have either introduced legislation to legalize iGaming or introduced a bill that may result in an iGaming referendum during an upcoming election, it added.
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