{"id":244128,"date":"2022-11-18T12:48:17","date_gmt":"2022-11-18T18:48:17","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=244128"},"modified":"2022-11-18T13:19:50","modified_gmt":"2022-11-18T19:19:50","slug":"draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/","title":{"rendered":"DraftKings Stock Has Big Upside Potential, Says Piper Analyst"},"content":{"rendered":"

DraftKings (NASDAQ: DKNG) stock traded modestly higher Friday amid a couple of favorable headlines, including a new bullish sell-side call.<\/p>\n

\"DraftKings
Actor Kevin Hart in a DraftKings advertisement. An analyst is bullish on the stock. (Image: Oddschecker)<\/figcaption><\/figure>\n

In a note to clients on Friday, Piper Sandler analyst Matt Farrell started coverage of the online sportsbook operator with an \u201coverweight\u201d rating and a $21 price target, which implies upside of about 41% from the November 17 close. The analyst noted that where the gaming equity currently resides could be \u201can attractive long-term entry point.\u201d<\/p>\n

Farrell\u2019s bullish view on DraftKings arrives as the stock suffered some setbacks earlier this month. That’s after the company forecast a wider-than-expected 2023 earnings before interest, taxes, depreciation, and amortization (EBITDA) loss, prompting several analysts to trim price forecasts<\/a> on the name.<\/p>\n

With profitability expectations reset after the initial 2023 guide, we believe current levels represent an attractive long-term entry point, particularly with the risk of a future capital raise largely diminished,\u201d<\/strong> wrote the analyst.<\/p><\/blockquote>\n

Most analysts covering the gaming equity have positive ratings on the shares and the consensus price target is close to $21.<\/p>\n

DraftKings’ Path to Profitability<\/h2>\n

While the 2023 guidance<\/a> issued by the sportsbook operator earlier this month disappointed investors, the silver lining is the investment community has more clarity on DraftKings\u2019 pathway to profitability.<\/p>\n

\n

It appears the company could break even on EBITDA, or be slightly profitable in the fourth quarter of 2023. That\u2019s pivotal at a time when some of DraftKings\u2019 biggest rivals<\/a> are closing in on the end of their money-losing ways.<\/p>\n<\/div>\n

\u201cFurthermore, while we understand the profitability scrutiny in the current environment, we feel it somewhat misses the forest for the trees, as investors would likely be questioning the broader market opportunity if the company were profitable in Q4 2022,\u201d added Farrell.<\/p>\n

Perhaps coincidentally, the analyst\u2019s new coverage of DraftKings arrived on the same day that Maryland finally provided a date for the debut of mobile sports betting. The state, which approved sports wagering in a 2020 ballot initiative<\/a>, is one of the most widely anticipated additions to the regulated sports wagering fray. That’s because disposable income is high in the state and residents are enthusiastic about sports.<\/p>\n

Other DraftKings Catalysts<\/h2>\n

Speaking of state-level catalysts for DraftKings stock, Piper Sandler\u2019s Farrell noted \u201ca steady cadence of legalization.\u201d Massachusetts and Ohio are the marquee states readying to join the mobile sports betting lineup over the near term.<\/p>\n

DraftKings also carved out a growing niche in the internet casino market, which is notable because that industry offers better margins than sports betting, and its long-term growth profile could prove superior as more states approve it. Farrell\u2019s total addressable market forecast for US and Canadian sports betting and iGaming is ambitious at $80 billion.<\/strong><\/p>\n

\u201cOverall, we recommend investors own DraftKings for exposure to the rapidly growing online sports betting and iGaming markets,\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ: DKNG) stock traded modestly higher Friday amid a couple of favorable headlines, including a new bullish sell-side call. In a note to clients on Friday, Piper Sandler analyst Matt Farrell started coverage of the online sportsbook operator with an \u201coverweight\u201d rating and a $21 price target, which implies upside of about 41% from […]<\/p>\n","protected":false},"author":46,"featured_media":244131,"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 Stock Endorsed In New Coverage By Piper Sandler Analyst<\/title>\n<meta name=\"description\" content=\"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stock Endorsed In New Coverage By Piper Sandler Analyst\" \/>\n<meta property=\"og:description\" content=\"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/\" \/>\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=\"2022-11-18T18:48:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-18T19:19:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\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=\"2 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-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/\",\"name\":\"DraftKings Stock Endorsed In New Coverage By Piper Sandler Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png\",\"datePublished\":\"2022-11-18T18:48:17+00:00\",\"dateModified\":\"2022-11-18T19:19:50+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png\",\"width\":1200,\"height\":675,\"caption\":\"Actor Kevin Hart in a DraftKings advertisement. An analyst is bullish on the stock. (Image: Oddschecker)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#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 Stock Has Big Upside Potential, Says Piper Analyst\"}]},{\"@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 Stock Endorsed In New Coverage By Piper Sandler Analyst","description":"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"DraftKings Stock Endorsed In New Coverage By Piper Sandler Analyst","og_description":"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.","og_url":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-11-18T18:48:17+00:00","article_modified_time":"2022-11-18T19:19:50+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png","type":"image\/png"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/","url":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/","name":"DraftKings Stock Endorsed In New Coverage By Piper Sandler Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png","datePublished":"2022-11-18T18:48:17+00:00","dateModified":"2022-11-18T19:19:50+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"DraftKings stock could be a big long-term winner, according to Piper Sandler analyst.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/KH.png","width":1200,"height":675,"caption":"Actor Kevin Hart in a DraftKings advertisement. An analyst is bullish on the stock. (Image: Oddschecker)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/draftkings-stock-endorsed-in-new-coverage-by-piper-sandler-analyst\/#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 Stock Has Big Upside Potential, Says Piper Analyst"}]},{"@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\/244128"}],"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=244128"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/244128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/244131"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=244128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=244128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=244128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}