Reasons Why DraftKings (DKNG) Offers Attractive Upside

DraftKings Inc (NASDAQ:DKNG) is one of the best large cap stocks under $100 with huge upside potential.

On January 23, Daniel Politzer from JPMorgan reiterated his Overweight rating on DraftKings Inc (NASDAQ:DKNG). He reduced his price target to $41, which still yields around 37% upside.

Politzer’s Overweight rating is part of JPMorgan’s target adjustments across the gaming space, in line with the firm’s fourth quarter results preview. The firm suggested a cautious approach from investors, given a lot of baggage and negativity already being carried by the stocks within this segment. However, it remains bullish on the digital segment, which it expects to beat earnings consensus.

On January 9, Citizens reiterated its Market Outperform rating for DraftKings Inc (NASDAQ:DKNG), with a price target of $44. This came after Maine legalized online casino gaming and iPoker, becoming the ninth state to do so. The firm expects this development to present growth opportunities for DraftKings Inc (NASDAQ:DKNG).

Accordingly, four licenses will be issued once the state launches its iGaming market. As per Citizens’ predictions, DraftKings Inc (NASDAQ:DKNG) will be amongst the top candidates to get these licenses, given their current agreements with Maine’s two tribal operators around online sports betting.

DraftKings Inc (NASDAQ:DKNG) is a digital sports entertainment and gaming business. Through a vertically integrated proprietary technology, it offers online betting, fantasy sports, digital lottery, and other relevant products. It leverages high-volume engagement for cross-selling within many of its product categories.

While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.