DraftKings Analyst Bets Market Can Exceed $100B 'If Every State Legalized iGaming'

Shares of DraftKings Inc DKNG have been in focus ahead of the NFL playoffs.

The Boston-based company has the largest share of a market that is likely to grow strongly, according to BMO Capital Markets.

The DraftKings Analyst: Brian Pitz initiated coverage of DraftKings with an Outperform rating and price target of $43.

The DraftKings Thesis: The company is a market share leader in the legal North American online gambling market, which is projected to grow from around $20 billion in early 2024 to $30 billion by 2028, only taking into account the existing states, Pitz said in the initiation note.

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“We see a vast opportunity as more states legalize, allowing DraftKings to dramatically expand its footprint and profitability,” the analyst wrote. “Early states are also becoming profitable faster, giving confidence in the foundational economics of the DraftKings model ahead of more legalization and expansion.

The U.S. market could exceed $100 billion “if every state legalized OSB and iGaming,” Pitz added.

DKNG Price Action: Shares of DraftKings had risen by 1.55% to $34.13 at the time of publication Tuesday.

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