Photo by Julia Joppien on Unsplash

DraftKings Inc (Nasdaq: DKNG) has lost about 10% over the past three months but a MoffettNathanson analyst says the weakness has only created an opportunity to buy.

DraftKings stock could climb to $37

On Tuesday, Robert Fishman upgraded the sports betting company to “buy”. His $37 price target suggests about a 30% upside from here.

The analyst is constructive on DraftKings stock as it has trimmed costs and accelerated its path to profitability in the recent quarter while “investing in its long-term competitive advantages”.

His bullish note arrives only days before the Nasdaq-listed firm is scheduled to report its Q3 results. Consensus is for it to lose 69 cents a share this quarter versus $1.0 per share a year ago.

Note that DKNG is currently up a whopping 160% already versus the start of 2023.

DraftKings has dethroned BetMGM in the U.S.

The MoffettNathanson analyst recommends buying DraftKings stock because he’s convinced that a meaningful inflection in terms of profitability is right around the corner. His research note reads:

 

We expect this momentum in both sides of the business to continue, which should drive sustained, robust topline growth while the company remains focused on strategically reining in expense growth.

DKNG has already dethroned BetMGM as the top name in iGaming in the United States and is reportedly narrowing the market share gap versus FanDuel in online sports betting as well.

Looks like I’ll be switching to DraftKings. FanDuel isn’t voiding out Bijan Robinson bets and DraftKings did. Lost money on this BS @FDSportsbook pic.twitter.com/qfHY3M8GI6

— Andrew Whitehouse (@Whitehouse502) October 23, 2023

Earlier this year, DraftKings proposed to acquire the U.S. assets of PBH Holdings.

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