{"id":317535,"date":"2024-04-16T15:44:31","date_gmt":"2024-04-16T20:44:31","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=317535"},"modified":"2024-04-17T10:16:59","modified_gmt":"2024-04-17T15:16:59","slug":"draftkings-earns-buy-rating-from-goldman-sachs","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/","title":{"rendered":"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs"},"content":{"rendered":"

Shares of DraftKings (NASDAQ: DKNG) gained 2.74% on a mixed day for gaming stocks after Goldman Sachs issued a bullish call on the online sportsbook operator.<\/p>\n

\"DraftKings\"
DraftKings CEO Jason Robins. Goldman Sachs initiated coverage of the stock with a “buy” rating. (Image: Bloomberg)<\/figcaption><\/figure>\n

In a note to clients on Tuesday, analyst Ben Miller tagged DraftKings with a \u201cbuy\u201d rating and a $60 price target, implying upside of 37% from the April 15 close. He expects DraftKings, which delivers first-quarter results on May 3, to continue delivering substantial topline growth.<\/p>\n

(We) expect DraftKings to compound revenue at 20%+ as it continues to benefit from healthy growth in existing states, as well as future state legalizations across online sports betting & iGaming,\u201d wrote Miller.<\/p><\/blockquote>\n

Recent data indicate DraftKings is adding online sports wagering market share in large states, including Michigan and Pennsylvania<\/a>. The company also possesses one of the most valuable brands<\/a> in the industry, and its mobile application is among bettors\u2019 favorites due to the operator\u2019s investments in technology. That presents DraftKings with significant advantages over some smaller rivals that are struggling to add market share.<\/p>\n

DraftKings Stock Not as Expensive as Believed<\/h2>\n

While shares of DraftKings are higher by 65% over the past nine months, and 134.5% over the past year, Miller argues the stock is actually trading at attractive multiples relative to the industry and its own historical averages.<\/p>\n

\u201cWhile the stock is up ~65% over the past 9 months, DKNG is trading at a growth adjusted revenue multiple of 0.15x (vs. its historical average of 0.19x and peers currently trading at 0.17x), which is down ~20% over the same time period,\u201d wrote the analyst.<\/p>\n

\n

As is often the case with emerging growth stocks following scorching runs to the upside, investors can place added emphasis<\/a> on valuation. Conversely, valuation alone isn\u2019t a reason to buy or sell a stock, and if DraftKings keeps with its tradition of boosting earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance, it could be seen as increasingly undervalued based on the math presented above.<\/p>\n<\/div>\n

\u201cWe see upside to Street revenue as estimates appear to be pricing in conservatism around some combination of existing state gross gaming revenue (GGR) as % of PCE, new state launches across online sports betting (OSB) & iGaming &\/or DraftKings’ market share position,\u201d added Miller.<\/p>\n

Risks to DraftKings’ Bull Thesis<\/h2>\n

With the stock on a scintillating pace to start 2024, it’s clear DraftKings is proving immune to at least one negative scenario — that being disappointment on the new state legalization front. With Georgia\u2019s 2024<\/a> legislative session over, it appears no states of note will add sports betting or iGaming this year.<\/p>\n

\n

Miller noted that risks to the DraftKings upside thesis include sluggishness on the new state launch front, slack growth in the operator\u2019s vintage states, and the possibility of eroding market share. However, there\u2019s currently little evidence indicating DraftKings is losing market share.<\/p>\n<\/div>\n

On the legislative front, it\u2019s possible for things to change for the better in Missouri<\/a>, where a significant majority of voters approve of adding mobile sports wagering, but that appears to be a heavy lift at the moment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of DraftKings (NASDAQ: DKNG) gained 2.74% on a mixed day for gaming stocks after Goldman Sachs issued a bullish call on the online sportsbook operator. In a note to clients on Tuesday, analyst Ben Miller tagged DraftKings with a \u201cbuy\u201d rating and a $60 price target, implying upside of 37% from the April 15 […]<\/p>\n","protected":false},"author":46,"featured_media":260277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[81903,80968],"acf":[],"yoast_head":"\nDraftKings Earns Buy Rating From Goldman Sachs<\/title>\n<meta name=\"description\" content=\"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Earns Buy Rating From Goldman Sachs\" \/>\n<meta property=\"og:description\" content=\"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/\" \/>\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=\"2024-04-16T20:44:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-17T15:16:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\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-earns-buy-rating-from-goldman-sachs\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/\",\"name\":\"DraftKings Earns Buy Rating From Goldman Sachs\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg\",\"datePublished\":\"2024-04-16T20:44:31+00:00\",\"dateModified\":\"2024-04-17T15:16:59+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg\",\"width\":1200,\"height\":800,\"caption\":\"DraftKings CEO Jason Robins. He and other insiders continue selling shares. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#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 Lands Buy Rating in New Coverage by Goldman Sachs\"}]},{\"@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 Earns Buy Rating From Goldman Sachs","description":"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/","og_locale":"en_US","og_type":"article","og_title":"DraftKings Earns Buy Rating From Goldman Sachs","og_description":"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.","og_url":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2024-04-16T20:44:31+00:00","article_modified_time":"2024-04-17T15:16:59+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.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-earns-buy-rating-from-goldman-sachs\/","url":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/","name":"DraftKings Earns Buy Rating From Goldman Sachs","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg","datePublished":"2024-04-16T20:44:31+00:00","dateModified":"2024-04-17T15:16:59+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"DraftKings Lands Buy Rating in New Coverage by Goldman Sachs.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/jr-1.jpg","width":1200,"height":800,"caption":"DraftKings CEO Jason Robins. He and other insiders continue selling shares. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/draftkings-earns-buy-rating-from-goldman-sachs\/#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 Lands Buy Rating in New Coverage by Goldman Sachs"}]},{"@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\/317535"}],"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=317535"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/317535\/revisions"}],"predecessor-version":[{"id":317615,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/317535\/revisions\/317615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/260277"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=317535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=317535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=317535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}