DraftKings Poised to Shoot 30%-Plus Higher, Says Analyst

DraftKings (NASDAQ: DKNG) has been a popular stock over the past few months as various U.S. states made moves to legalize sports gambling. One noted analyst thinks it still has plenty of room to continue rising.

On Tuesday, analyst Vitaly Umansky of Sanford C. Bernstein initiated coverage on the company. His initial recommendation is an unhesitating outperform (buy, in other words) at a price target of $71 per share. That's more than 31% above the stock's most recent closing price.

Umansky is fond of DraftKings because it's a pure and solid play on the hot segment of sports gambling. Additionally, he wrote in his research note that the company's "...daily fantasy sports player database creates lower customer cost of acquisition as well as incremental cross-selling opportunities into iGaming (where [he] still give[s] limited value)."

Source Fool.com