As Credit Suisse did yesterday, several research firms are out today in defense of DraftKings. Jefferies analyst David Katz said the crucial matter is whether or not DraftKings adequately disclosed SBTech’s black\/gray market exposure and whether that exposure remains today. While noting the matter is unresolved and raises \u201ca series of key questions and issues worth noting,\u201d the analyst keeps a \u201cbuy\u201d rating and $75 price target on the stock.<\/p>\n
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Truist analyst Barry Jonas said it’s unlikely the US and other regulators will deny DraftKings gaming licenses as a result of the controversy, and that SBTech isn’t a meaningful contributor to the parent company’s revenue. He keeps a \u201chold\u201d rating and $54 forecast on the stock.<\/p>\n<\/div>\n
Susquehanna analyst Joseph Stauff said the SBTech revelation isn’t surprising, because nearly all European and UK sports betting firms operate in black\/gray markets. He adds that if there are risks with DraftKings, they are launch speeds and the company’s cash burn rate. The analyst has a \u201cpositive\u201d rating on the shares with a $75 estimate.<\/p>\n
Morgan Stanley’s Thomas Allen says unregulated international markets probably account for just eight percent of DraftKings revenue, and that SBTech will decline to five percent of the company’s sales in 2025. He adds that if DraftKings sees fit to dispose of SBTech’s legacy assets, it won’t affect overall forecasts. Allen rates the stock \u201coverweight,\u201d with a $58 target.<\/p>\n","protected":false},"excerpt":{"rendered":"
A day after slumping following publication of a bearish report by Hindenburg Research, DraftKings stock (NASDAQ:DKNG) is rebounding modestly Wednesday. Several analysts are defending the sportsbook operator, along with the support of a well-known investor. On Tuesday, shares of DraftKings finished lower by 4.1 percent — though that was well above the lows of the […]<\/p>\n","protected":false},"author":46,"featured_media":176571,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\n
DraftKings Stock Supported After Being Blasted by Hindenburg Report<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n