Shares of DraftKings are due for a resurgence, particularly as sports wagering eyes legalization in California and beyond, Jefferies states. Analyst David Katz resumed protection of the stock with a buy ranking, pointing out moving mindsets towards sports wagering in NorthAmerica “While we recognize the marketing intensity exceeded our initial expectations, we maintain DKNG is among the best positioned with a strong brand, first-mover advantage, resources, and strategic clarity,” Katz composed. “To prove this point, despite the competition, DKNG has generally held on to > 20% handle market share in key markets, and consistently scored well in our survey and brand matrix.” Some experts have actually grown worried with the business’s capability to support a money burn prior to relying on earnings. Katz stated those worries are “overblown” and anticipates DraftKings to have sufficient money to support a launch inCalifornia “Given the company ended 1Q22 with $1.773B of cash, we expect the company should still have over $800-$850M of cash by the end of 2023,” he stated. Shares of DraftKings have actually dropped 54% this year however might skyrocket almost 162% based upon Jefferies’ $33 rate target.– CNBC’s Michael Bloom contributed reporting
