Canaccord's Graham Defends Bullish DraftKings Rating On 'Fast Money'

The bullish case for online sports betting company Draftkings Inc DKNG remains unchanged at a time when the resumption of professional sports is in question, according to Canaccord Genuity's Michael Graham.

DraftKings As A Long-Term Play: Sports fans across the U.S. never had access to a legal, convenient and easy way to bet on matches, Graham said Wednesday on CNBC's "Fast Money."

The ongoing wave of online gambling legalization across the U.S. remains in the early stages, as only nine states permit online mobile betting, the analyst said — and another nine or 10 states are "really close to happening." 

Fast forward several years, and approximately two-thirds of the country will be able to legally bet on sports, he said. 

Sports Will Come Back: Americans looking to bet on sports can still do so if professional sports leagues return without any fans in attendance, Graham said. The National Football League attracts the highest number of bettors, and it is looking "fairly positive" that football and other leagues are coming back in some form, the analyst said. 

If the NFL doesn't return, a bullish stance on DraftKings stock can still be justified, as the research firm is taking a one-year view, he said. 

This event could even offer investors a better entry point for a long-term holding, Graham said. 

Why DraftKings? Investors don't have many options to gain exposure to the online sports betting market, Graham said. Some of the alternatives to DraftKings consist of larger companies with different businesses that aren't as fast-growing.

DraftKings is likely to prove to be a digital disruptor by building new products quickly and capitalizing on new opportunities, the analyst said. 

The stock was down 2.72% at $32.20 at the time of publication Thursday.

Related Links:

Sports Betting ETF Makes Adjustments After Hot Start, Including Addition Of Wynn Resorts

DraftKings Takes Advantage Of 'Favorable Market Conditions' With Share Offering