Why Benchmark Is Staying Bullish on DraftKings Inc. (DKNG) Despite New York Weakness

DraftKings Inc. (NASDAQ:DKNG) is among the stocks under $50 to buy now. On January 20, Benchmark reaffirmed a ‘Buy’ rating on DraftKings Inc. (NASDAQ:DKNG) with an unchanged price target of $37. This optimistic stance, suggesting an upside potential of 18%, comes even after the company’s weak performance in the New York online sports betting market. According to Investing.com, New York’s online sports betting market witnessed a sharp reversal in Week 19, with handle down 2.0% YoY and revenue drop 39.9% YoY.

Earlier on January 8, Texas Capital Securities began coverage of DraftKings Inc. (NASDAQ:DKNG) with a price target of $39, following the company’s recent valuation stability. The firm described the company as a “blue chip online gaming stock,” without specifying whether the rating was a buy, hold, or sell recommendation.

Texas Capital Securities outlined various factors tied to DraftKings Inc. (NASDAQ:DKNG)’s “outsized stock volatility” in the times ahead, including the company’s status as a pure play in the online gaming space. Additionally, the firm identified potential online gaming tax hikes, current investor concerns about hold and win rates, and the expansion of prediction markets as drivers of the aforementioned volatility.

DraftKings Inc. (NASDAQ:DKNG) is a Massachusetts-based digital sports entertainment and gaming company that offers products such as online sports betting, lottery courier services, sportsbooks, and iGaming.

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Disclosure: None.