{"id":216,"date":"2021-05-17T16:20:29","date_gmt":"2021-05-17T13:20:29","guid":{"rendered":"https:\/\/xxbet-company.com\/draftkings-stock-sagging-but-guggenheim-sees-upside-coming\/"},"modified":"2021-05-17T16:20:29","modified_gmt":"2021-05-17T13:20:29","slug":"draftkings-stock-sagging-but-guggenheim-sees-upside-coming","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/pl\/draftkings-stock-sagging-but-guggenheim-sees-upside-coming\/","title":{"rendered":"DraftKings Stock Sagging, But Guggenheim Sees Upside Coming"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Spis tre\u015bci<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/pl\/draftkings-stock-sagging-but-guggenheim-sees-upside-coming\/#Reasons_for_Concern_with_DraftKings_Stock\" title=\"Reasons for Concern with DraftKings Stock\">Reasons for Concern with DraftKings Stock<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/pl\/draftkings-stock-sagging-but-guggenheim-sees-upside-coming\/#DraftKings_Still_Has_Catalysts\" title=\"DraftKings Still Has Catalysts\">DraftKings Still Has Catalysts<\/a><\/li><\/ul><\/nav><\/div>\n<p>DraftKings (NASDAQ:DKNG) stock is mired in a slump. But that\u2019s not preventing some analysts from sticking with or starting new bullish outlooks on the name.<\/p>\n<figure aria-describedby=\"caption-attachment-172234\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-172234 lazyload\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-142x95.jpg?x38396\" data-src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-142x95.jpg?x38396\" alt=\"DraftKings stock\" width=\"1200\" height=\"800\" data-srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-142x95.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-1024x683.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-768x512.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-600x400.jpg 600w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng.jpg 1440w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" data- title=\"\"><img loading=\"lazy\" class=\"wp-image-172234\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-142x95.jpg?x38396\" alt=\"DraftKings stock\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-142x95.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-1024x683.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-768x512.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng-600x400.jpg 600w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/04\/dkng.jpg 1440w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" title=\"\"><figcaption class=\"text-description\">A DraftKings sign in Boston. Guggenheim analyst Curry Baker sees big upside for the stock. (Image: <em>Boston Globe<\/em>)<\/figcaption><\/figure>\n<p>Guggenheim analyst Curry Baker initiated coverage of the sportsbook operator today with a \u201cbuy\u201d rating and a $75 price target. That\u2019s slightly above the Wall Street consensus of $73.27, but still implies potential upside of 30.5 percent from the April 29 close. In what\u2019s <a href=\"https:\/\/www.casino.org\/news\/betmgm-forecasts-32-billion-igaming-sports-betting-market-aims-for-25-percent-share\/\" rel=\"nofollow noopener\" target=\"_blank\">one of the rosier forecasts<\/a> to date, Baker says the combined North American iGaming and online sports betting markets could eventually be worth $70 billion, with DraftKings commanding a sizable chunk.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>We have applied, in our opinion, reasonable legalization and market share assumptions to each of these [total addressable markets] to derive our long-term North American revenue outlook for DraftKings of $7.6 billion to $10.6 billion,\u201d said the analyst in a note to clients.<\/p>\n<\/blockquote>\n<p>That\u2019s cheery commentary on DraftKings, which is off 5.80 percent over the past month and resides 23.60 percent below its 52-week high. Declines of 20 percent or more from recent highs are considered bear markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Reasons_for_Concern_with_DraftKings_Stock\"><\/span>Reasons for Concern with DraftKings Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Over the past year, sports betting equities rallied as more states legalized the activity, with Wall Street frequently citing a favorable legislative environment <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-is-slumping-but-indicators-portend-rebound\/\" rel=\"nofollow noopener\" target=\"_blank\">as a primary catalyst<\/a> for stocks such as DraftKings.<\/p>\n<div class=\"callout\">\n<p>However, the market remains fiercely competitive. While the Boston-based company is the second-largest online sportsbook operator in the US, behind only FanDuel, and enjoys superior brand recognition, some investors worry the company\u2019s marketing spending is too high. That\u2019s while market observers see evidence DraftKings is losing market share in some marquee states.<\/p>\n<\/div>\n<p>DraftKings\u2019 gross gaming revenue (GGR) share in recent months in vital internet casino and sports wagering markets \u201cis trending at or below its trailing 6-12 month averages in those markets, per our estimates. We wonder whether the emergence of BetMGM (and its aggressive bonusing strategy) over that same time period has had a major impact \u2014 and how long such an impact might last,\u201d said Eilers &#038; Krejcik in the most recent edition of its bi-weekly <i>EKG Line <\/i>report.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DraftKings_Still_Has_Catalysts\"><\/span>DraftKings Still Has Catalysts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Baker, the Guggenheim analyst, forecasts 70 percent of the US population having access to regulated online sports betting by 2025 \u2013 an obvious catalyst for equities such as DraftKings. While concerns about market share are unlikely to dissipate over the near term, the company has avenues for effectively adding new bettors.<\/p>\n<p><strong>\u201cDraftKings has a paid daily fantasy sports (DFS) user base of ~5 million unique paid customers, which provide an immediate cohort to target when a new state launches. Over 60% of active DFS players have been cross-sold into online sports betting or iGaming during the first 12-18 months of a new state launching,\u201d<\/strong> said Baker.<\/p>\n<p>DraftKings stock could be propelled by other catalysts, including the company\u2019s efforts to bolster its technology stack and its move <a href=\"https:\/\/www.casino.org\/news\/draftkings-teaming-up-with-meadowlark-accesses-le-batard-podcasts\/\" rel=\"nofollow noopener\" target=\"_blank\">into the media realm.<\/a> Both jibe with its efforts to become a vertically integrated operator.<\/p>\n<p>\u201cBeyond the momentum towards legalization and the inherent tailwinds new states\/markets offer, we see several other competitive advantages underpinning our positive outlook for DraftKings,\u201d said Guggenheim\u2019s Baker.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-offers-major-upside-says-guggenheim-analyst\/\" target=\"_blank\">DraftKings Stock Sagging, But Guggenheim Sees Upside Coming<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>DraftKings (NASDAQ:DKNG) stock is mired in a slump. But that\u2019s not preventing some analysts from sticking with or starting new bullish outlooks on the name. A DraftKings sign in Boston. Guggenheim analyst Curry Baker sees big upside for the stock. (Image: Boston Globe) Guggenheim analyst Curry Baker initiated coverage of the sportsbook operator today with <a href=\"https:\/\/xxbet-company.com\/pl\/draftkings-stock-sagging-but-guggenheim-sees-upside-coming\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/posts\/216"}],"collection":[{"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/comments?post=216"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/posts\/216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/media\/217"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/media?parent=216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/categories?post=216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/pl\/wp-json\/wp\/v2\/tags?post=216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}