Investing.com — Shares in DraftKings Inc (NASDAQ:) rose on Friday, boosted in part by analysts at Oppenheimer who improved their price target of the stock.
In a note to clients, the analysts raised their target for the fantasy gaming and sports betting group to $36 from $30 and maintained its outperform rating.
The analysts argued that recent state gaming reports, particularly in New York, suggest that DraftKings is seeing stronger product engagement. This is in turn generating higher market share and making customer acquisition more efficient for the company, they added.
“[C]ompetencies in product development and customer acquisition that [DraftKings] utilized to become the daily fantasy sports market leader will allow the company to be a critical player in accelerating the shift in US sports betting from [around] $150 billion wagered illegally/offshore to licensed domestic operators,” the Oppenheimer analysts said.
They estimated that DraftKings could achieve as much as 30% market share in the U.S. legal sports wagering and online gaming markets, predicting that the two could be worth about $15.5 billion and $8.4 billion respectively by 2025.
