Benchmark initiated coverage on DraftKings with an "outperform" rating
Online sports and gambling concern DraftKings Inc (NASDAQ:DKNG) is up 2.2% at $35.55 after Benchmark initiated coverage with a "buy" rating and a $47 price target -- representing a 35% premium to last night's close. The analyst cited DraftKings' leading brand and market share in the fantasy sports space, and predicted a "potentially massive" and growing addressable market from online sports betting and iGaming state legalization.
Benchmark is in good company. Coming into today, all nine analysts in coverage considered DraftKings a "buy" or better. Plus, the consensus 12-month price target of $46.70 is a 32.6% premium to current levels, and marks a level not yet touched by DKNG.
The options pits are reflecting this sentiment. In the last 10 days, 91,124 calls crossed the tape, compared to just 25,879 puts. Plus, DKNG's Schaeffer's put/call open interest ratio (SOIR) of 0.11 suggests short-term options traders are targeting calls over puts of late.
This optimism is unsurprising. DKNG has had an impressive run on the charts since going public back in April. While a ceiling at the $44 level sent the security lower in late June, its 80-day moving average swooped in as a springboard -- sending DraftKings stock to a year-to-date lead of 227.3%. The stock is also enjoying support at its 60-day moving average.