DraftKings Stock Is Surging: What's Going On?

DraftKings Inc DKNG shares are trading higher Wednesday following positive analyst coverage.

What Happened: BofA Securities analyst Shaun Kelley upgraded DraftKings from a Neutral rating to a Buy rating and raised the price target to $35.

The BofA analyst cited accelerating product and revenue momentum, as well as market share gains as reasons for the upgrade, per CNBC. 

DraftKings shares are already up more than 150% year-to-date, but Kelley expects the outperformance to continue. According to Benzinga data, the DraftKings upgrade is the only upgrade Kelley has issued this year. 

Benchmark analyst Mike Hickey also maintained DraftKings with a Buy rating on Wednesday and raised the price target from $26 to $32.

The news comes just a week after Deutsche Bank raised its price target to $24 and Oppenheimer raised its price target to $36.

At the end of June, DraftKings announced that it was no longer pursuing the acquisition of PointsBet. The stock popped on the news.

See Also: DraftKings Shares Surge As Options Activity Spikes, Traders See More Upside Ahead

DKNG Price Action: DraftKings shares were up 3.94% at $30.10 at the time of writing, according to Benzinga Pro.

Photo: courtesy of DraftKings.