Wall Street Thinks DraftKings Stock Has 45% Upside. Should You Buy?
Gambling is becoming more common in the sports world. There are specific shows dedicated to discussing lines and odds on major television, a massive departure from how sports gambling used to be thought of. One of the most prominent players in this industry is DraftKings (NASDAQ: DKNG), whose sportsbook is legal in 22 states.
Even with the wind prevailing in DraftKing's favor, the stock has had a tumultuous life as a public company after being brought to the markets through a special purpose acquisition company. At its peak, the stock traded above $70 per share, but it now sits at about 18% of that high, down to just $13 per share. Despite this fall, Wall Street analysts have a median 12-month price target of $19, indicating about 45% upside from the current price.
So should you follow these analysts' lead and purchase shares, or is this a bad bet? Let's find out.
Source Fool.com
