Shares of DraftKings Inc. (DKNG) have experienced a remarkable surge this year, with a staggering increase of nearly 175% as of year-to-date. Joining the chorus of analysts, Jefferies analyst David Katz has raised his price target on the stock from $35 to $38. This new target suggests a potential upside of approximately 22% from its current levels. While DraftKings shares saw a modest 2% increase in Monday morning trading, the company’s dominance in the U.S. market remains unshaken.
According to Katz, DraftKings is solidifying its leadership position in the country. Additionally, he believes that the available data points and upcoming catalysts are poised to generate positive results, thereby mitigating concerns about the company’s valuation. Katz confidently predicts that the positive momentum will persist, underscoring his confidence in DraftKings’ potential for growth.
Furthermore, Katz’s estimation falls on the higher end of the consensus view, demonstrating his growing comfort with the notion that DraftKings is successfully gaining momentum in the realm of online sports betting. This expansion into lucrative markets bolsters their growth prospects.
In fact, this recent boost in price target follows similar actions taken by analysts at BTIG and JMP Securities towards the end of last week. Notably, an analyst from BofA Securities also upgraded the stock, underscoring the continued faith in DraftKings’ upward trajectory.
Overall, DraftKings Inc. exhibits strong growth potential and an impressive track record for investors. With multiple analysts raising their price targets, it is evident that the company’s achievements are garnering recognition in the market.