DraftKings initiated with a Buy at Needham; tgt $70
12:57 PM ET 10/1/20 | Briefing.com
Related Quotes
1:52 PM ET 10/1/20
Symbol Last % Chg
DKNG
62.50 6.22%
Quotes delayed at least 15 minutes
. Needham initiates DKNG with a Buy and price target of $70. Analyst Brad Erickson added, "We view DKNG as one of the leading beneficiaries as online sports betting and gambling take off in the U.S. - an opportunity we size between $42 and $58 billion annually longer-term. We expect the regulatory tailwind to persist and believe online providers' access to data creates a structurally better user experience vs. brick & mortar. Thanks to DKNG's data-centric approach to customer acquisition and its leading brand & marketing approach, we believe the company could regularly exceed top-line forecasts, although near-term, we suspect EBITDA expectations could be too aggressive. We initiate coverage with a $70 target based on an EV/revenue multiple of 24x our '22 estimate. Risks are mainly COVID's effect on sports and competition, while valuation will be a debate for profit-focused investors, less so for growth-oriented investors."