analyst price target cuts<\/a> and as investors grow increasingly antsy about the timeline to profitability.<\/p>\n<\/div>\nInvestors also expressed concern about the broad landscape of sportsbook operators in the US and the resources required to get ahead in that field. For its part, DraftKings is a big spender on promotions to lure new clients. However, Allen notes the competitive arena already shows signs of thinning, and that’s to DraftKings’ benefit.<\/p>\n
\u201cCurrently in every state that releases market share data, the top 5 operators have at least 82 percent combined share. Though there is a lot negative written about the levels of marketing and promotional spending, this has driven a very concentrated market that only players of scale can really compete in,\u201d notes Allen.<\/p>\n
Don’t Ignore DraftKings<\/h2>\n
Profitability remains a prime investor concern. But amid the aforementioned slide, DraftKings stock may be residing at levels that are too compelling to ignore.<\/p>\n
While we and the market have been focused on near to medium-term profit concerns, we believe at the current price, one should not ignore that DKNG is a leading market share player in what will be a very large, profitable market,\u201d\u00a0Allen added.<\/p><\/blockquote>\n
If the stock can build on today’s momentum, it’s possible short sellers<\/a> that battered the stock last year could be forced to cover part of their positions, potentially fanning the flames of a rally.<\/p>\n","protected":false},"excerpt":{"rendered":"DraftKings (NASDAQ:DKNG) ranks as one of Wednesday’s best-performing gaming equities. It rose on hopes that an upgrade from Morgan Stanley analyst Thomas Allen marks an end to a long-running slide for the online sportsbook operator. In a note to clients today, Allen boosts his DraftKings rating to \u201coverweight\u201d from \u201cequal weight\u201d while maintaining a $31 […]<\/p>\n","protected":false},"author":46,"featured_media":199322,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\n
DraftKings Rallies With Help Of Morgan Stanley Upgrade<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n