Why DraftKings Just Won a 60% Upside Endorsement From Evercore
The share price of sports betting company DraftKings (NASDAQ: DKNG) has surged more than 8% today after it received a highly bullish "outperform" rating and price target from Evercore. Evercore's price target of $60 represented more than a 60% upside over the roughly $37 DraftKings was trading for at the time, though the stock has since climbed to around $40.
The massive upside forecast rests on the assumption DraftKings is perfectly positioned to profit from potential changes in sports betting policy. In his research note, Evercore analyst Kevin Rippey claimed "the market under appreciates the pull forward in US states' plans to legalize online sports betting." Heavily impacted by the COVID-19 pandemic, many states appear ready to pounce on the revenue potential offered by legalizing online sports betting -- and help fill their coffers even in the midst of quarantines or lockdowns.
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Source Fool.com
