DraftKings Inc. DKNG shares are up Thursday following an announcement on Wednesday that the company is no longer pursuing the acquisition of the U.S. business of PointsBet Holdings Ltd.
What Else: Oppenheimer analyst Jed Kelly reiterated an Outperform rating on the shares of DraftKings Inc.
Kelly implied from DraftKing's $195 million offer, 15% below PointsBet's $225 million offer, that PointsBet's U.S. segment was undervalued at $150 million.
Furthermore, he noted that Fanatics Betting and Gaming, which was involved in PointsBet's proposal, could become a larger player in online sports betting. While it is still early in its rollout, Kelly expects Fanatics to be live in key states by NFL season.
Pointsbet is also expected to increase its product offering, according to the analyst.
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DKNG Price Action: Shares of DKNG were up 3.27% at $26.50 at the time of publication, according to Benzinga Pro.
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