DraftKings (DKNG) Is ‘Too Big an Opportunity to Ignore.’ Penn National (PENN) Also Upgraded by James R. Wigen of Independent Financial Management

Online sports betting can stage a strong comeback this year, making DraftKings a solid wager, according to analysts at Morgan Stanley. Penn National Gaming also received an upgraded from analysts at Macquarie Research.

Morgan Stanley analyst Thomas Allen upgraded DraftKings (ticker: DKNG) to an Overweight from Equal Weight.  That matches the analyst consensus buy rating, which comes from 17 buys, eight holds, and one sell.

He maintained a $31 price target on the stock in a report titled “Too Big an Opportunity to Ignore; Upgrade to Overweight.”  One thing that the Morgan Stanley analyst didn’t change is the $31 price target for DKNG stock.  Even so, that still represents a potential 60.5% upside over the stock’s closing price on Tuesday. However, it is lower than the analyst consensus price prediction of $56.13 per share.

So what has Allen switching to a bull stance for DNKG stock? Here’s what the analyst had to say in a note obtained by Barron’s.

“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.”

 

Past performance does not guarantee Future results, therefore, understand investing in the Stock Market can cause you to lose money.  Please take the proper risk for your current situation and get the advice from a financial professional who clearly understands your current and future goals and objectives.

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