{"id":280895,"date":"2023-07-12T13:13:50","date_gmt":"2023-07-12T18:13:50","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=280895"},"modified":"2023-07-12T13:48:51","modified_gmt":"2023-07-12T18:48:51","slug":"draftkings-stock-rallies-with-help-of-bofa-upgrade","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/","title":{"rendered":"DraftKings Stock Soars as BofA Analyst Sees Inflection Point Nearing"},"content":{"rendered":"

DraftKings (NASDAQ: DKNG) extended its July rally Wednesday on the back of bullish comments from Bank of America analyst Shaun Kelley.<\/p>\n

\"DraftKings
Inside a DraftKings office. The stock extended its rally on Wednesday with the help of a Bank of America upgrade. (Image: Wall Street Journal<\/em>)<\/figcaption><\/figure>\n

In midday trading, the stock is higher by 5.32% on volume that\u2019s already exceeded the daily average. That extends its gains over the past week<\/a> to 16.56%, and its surge over the past month to nearly 22%. In a note to clients, Kelley upgraded DraftKings to \u201cbuy\u201d from \u201chold\u201d while boosting his price target on the shares to $35 from $25. That implies upside of 18.6% from the July 11 close.<\/p>\n

While DKNG has outperformed in 2023, we think market share gains can drive both Q2 \u201923 and near-term top line revisions (though likely anticipated) while cost leverage will likely drive bigger revisions in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and margins than anticipated,\u201d<\/strong> wrote Kelley.<\/p><\/blockquote>\n

DraftKings is higher by 167% year-to-date. It’s a surge Kelley said is fueled in part by a more rapid pace of sports betting launches<\/a> in the states approving the activity and the operator generating an increasingly larger sports wagering hold.<\/p>\n

Good Time for DraftKings Stock Rally<\/h2>\n

There\u2019s never a bad time for a stock to rally. But in the case of DraftKings, the recent move to the upside is particularly well-timed, because the Boston-based company is expected to deliver second-quarter results on August 4.<\/p>\n

\n

DraftKings soaring into its earnings could be a positive sign, particularly for a stock with a track record of making large moves following financial updates. On a related note, the last 20 earnings per share (EPS) revisions on the stock by analysts have been of the bullish variety<\/a>. Kelley points to the operator\u2019s ability to better manage costs, such as marketing and promotional spending, as a catalyst for the shares.<\/p>\n<\/div>\n

\u201cDraftKings has also reached a key cost inflection in its young business model, as we believe the rate of growth in cost of revenue and external marketing have peaked,\u201d added the analyst.<\/p>\n

Kelley is also bullish on the growth trajectory of the online sports betting market in the US, noting it will grow 35% on a year-over-year basis in 2023. That’s while posting a compound annual growth rate of 15% from this year through 2027.<\/p>\n

Wall Street Increasingly Bullish on DraftKings Stock<\/h2>\n

Kelley\u2019s report adds to a spate of recently positive Wall Street commentary on DraftKings stock. Currently, 33 analysts cover the name, with 18 rating it the equivalent of \u201cbuy\u201d or \u201cstrong buy.\u201d The average price target is $28.74, which is below where the stock trades today, indicating there\u2019s room for upside revisions to that number.<\/p>\n

\n

Speaking of upside potential, Oppenheimer bumped its price forecast on the gaming equity to $36 from $30 last week, while BTIG Research anointed DraftKings a top pick for the second half of 2023.<\/p>\n<\/div>\n

\u201cDraftKings is expected to benefit from favorable fundamentals in 2023, including product improvements, an increasing parlay mix, a positive operating backdrop, and improved efficiency, which could drive significant upside in estimates and positive revisions,\u201d according to BTIG.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ: DKNG) extended its July rally Wednesday on the back of bullish comments from Bank of America analyst Shaun Kelley. In midday trading, the stock is higher by 5.32% on volume that\u2019s already exceeded the daily average. That extends its gains over the past week to 16.56%, and its surge over the past month […]<\/p>\n","protected":false},"author":46,"featured_media":244408,"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 Rallies With Help Of BofA Upgrade<\/title>\n<meta name=\"description\" content=\"DraftKings stock extends torrid pace on back of Bank of America upgrade.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stock Rallies With Help Of BofA Upgrade\" \/>\n<meta property=\"og:description\" content=\"DraftKings stock extends torrid pace on back of Bank of America upgrade.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/\" \/>\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=\"2023-07-12T18:13:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-12T18:48:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"960\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\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=\"3 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-rallies-with-help-of-bofa-upgrade\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/\",\"name\":\"DraftKings Stock Rallies With Help Of BofA Upgrade\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG-1.jpg\",\"datePublished\":\"2023-07-12T18:13:50+00:00\",\"dateModified\":\"2023-07-12T18:48:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings stock extends torrid pace on back of Bank of America upgrade.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-with-help-of-bofa-upgrade\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG-1.jpg\",\"width\":1280,\"height\":960,\"caption\":\"Inside a DraftKings office. A research firm says some cautioned is warranted with the high-flying gaming company. 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