{"id":188639,"date":"2021-10-11T08:56:33","date_gmt":"2021-10-11T15:56:33","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=188639"},"modified":"2021-10-11T09:30:01","modified_gmt":"2021-10-11T16:30:01","slug":"draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/","title":{"rendered":"DraftKings Unlikely to Acquire Entain, Says Citi Analyst"},"content":{"rendered":"

The big news currently surrounding DraftKings (NASDAQ:DKNG) is whether or not the online sportsbook operator will formalize a $22.4 billion cash and stock takeover proposal for Entain Plc (OTC:GMVHY). One analyst doesn’t see the courtship becoming a marriage.<\/p>\n

\"DraftKings
Citi analyst Jason Bazinet is bullish on DraftKings stock. However, he doesn’t see the company buying Entain. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n
\n

In a note to clients today in which he initiates coverage of DraftKings stock, Citi analyst Jason Bazinet says he doesn’t expect the Boston-based gaming company will acquire the Ladbrokes owner. He starts coverage of DraftKings with a \u201cbuy\u201d rating and a $66 price target. That implies upside of about 37.5 percent from the Oct. 8 close.<\/p>\n<\/div>\n

Last month, DraftKings stunned the gaming industry by making a $20.5 billion cash and equity offer for Entain, which the target rejected. The suitor later floated a cash\/stock bid of $22.4 billion<\/a> and has until Oct. 19 to make a formal offer.<\/p>\n

An array of unknowns linger. For example, Entain partners with MGM Resorts International (NYSE:MGM) on the BetMGM business, and the casino giant needs to approve to any transaction<\/a> that would result in a competing business. However, it’s not yet clear if DraftKings is angling for a piece of the deal, or if it’s targeting Entain for its technology capabilities, as some analysts have suggested.<\/p>\n

Entain or Not, Reasons to Like DraftKings Stock<\/h2>\n

It remains to be seen if DraftKings can seal a deal for Entain. and there is some speculation that the suitor is merely floating offers to drive the price of the Coral owner higher, potentially forcing another buyer to overpay. Even without Entain, Citi’s Bazinet sees positive catalysts for DraftKings stock.<\/p>\n

The firm has quickly captured a leading position in the rapidly growing US sports betting market. And we expect DraftKings to be a net beneficiary, as customer acquisition rationalizes and the market consolidates,\u201d said the analyst. \u201cWe also believe current Street expectations for payer growth are reasonable.\u201d<\/p><\/blockquote>\n

Broadly speaking, the sell-side is bullish on DraftKings<\/a>, But thorny issues, such as lack of profitability, high customer acquisition costs, and marketing spending, weigh on some investors’ minds. On the other hand, it’s possible the value of DraftKings’ clients increases in exponential fashion.<\/p>\n

\u201cWe estimate the value of a DraftKings sub will increase from $1,750 in 2021 to $4,900 by 2024. The appreciation in the EV per sub is driven by: 1) higher [average revenue per user], 2) higher gross profit margins and 3) lower [customer acquisition costs],\u201d said Bazinet.<\/p>\n

The analyst adds DraftKings will have just shy of three million daily users by 2023.<\/p>\n

Other Betting Stocks Endorsed by Citi<\/h2>\n

Citi also starts coverage on sports betting data providers Genius Sports (NYSE:GENI) and Sportradar (NASDAQ:SRAD) with \u201cbuy\u201d ratings.<\/p>\n

A slew of Wall Street analysts are initiating coverage of Sportradar today, following the Swiss company’s September initial public offering (IPO)<\/a>.<\/p>\n

\u201cWe expect the global [online sports betting] market to grow 17% per annum from 2019 to 2025 underpinned by faster growth in the US (due to regulatory tailwinds),\u201d according to Citi. \u201cWe expect the iGaming market to grow at a similar pace of 16% per annum from 2019 to 2025.\u201d<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The big news currently surrounding DraftKings (NASDAQ:DKNG) is whether or not the online sportsbook operator will formalize a $22.4 billion cash and stock takeover proposal for Entain Plc (OTC:GMVHY). One analyst doesn’t see the courtship becoming a marriage. In a note to clients today in which he initiates coverage of DraftKings stock, Citi analyst Jason […]<\/p>\n","protected":false},"author":46,"featured_media":188640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\nDraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst<\/title>\n<meta name=\"description\" content=\"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst\" \/>\n<meta property=\"og:description\" content=\"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-11T15:56:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-11T16:30:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/\",\"name\":\"DraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg\",\"datePublished\":\"2021-10-11T15:56:33+00:00\",\"dateModified\":\"2021-10-11T16:30:01+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"Citi analyst Jason Bazinet is bullish on DraftKings stock. However, he doesn't see the company buying Entain. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"DraftKings Unlikely to Acquire Entain, Says Citi Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"DraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst","description":"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"DraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst","og_description":"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.","og_url":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-10-11T15:56:33+00:00","article_modified_time":"2021-10-11T16:30:01+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/","url":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/","name":"DraftKings Stock Still a Winner Without Entain Deal, Says Citi Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg","datePublished":"2021-10-11T15:56:33+00:00","dateModified":"2021-10-11T16:30:01+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"DraftKings unlikely to acquire Entain, but it still has plenty of upside potential, says an analyst.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/JB.jpg","width":1920,"height":1080,"caption":"Citi analyst Jason Bazinet is bullish on DraftKings stock. However, he doesn't see the company buying Entain. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-still-a-winner-without-entain-deal-says-citi-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"DraftKings Unlikely to Acquire Entain, Says Citi Analyst"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/188639"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=188639"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/188639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/188640"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=188639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=188639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=188639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}