One of the hottest stocks right now, DraftKings (NASDAQ:DKNG), has been an intriguing company to watch. Indeed, the moves in DKNG stock have been impressive this year. Shares of the online gaming stock started the year below $45, skyrocketed to nearly $75 in an earlier rally this year, and ultimately came back down to earth. Today, DKNG is down more than 5%, despite a rather bullish catalyst for this gambling stock.
Of course, today is another bloodbath in the markets. It appears the annual fall selloff has come early this year. Accordingly, investors in risk assets appear to be rethinking their positions today.
For investors considering high-growth stocks such as DraftKings, now is apparently not the time to be taking on extra risk. However, one analyst seems to disagree with this view.
Let’s dive into the analyst that just gave DKNG stock a big upgrade today.
DKNG Stock Down Despite Impressive Price Target
Currently, DKNG trades at roughly $56 per share. A recently updated price target from Loop Capital for DKNG stock of $105 implies upside of approximately 85% from current levels.
Indeed, the fact that DraftKings is gaining market share much faster than its peers is a key catalyst for this price target hike. Loop Capital believes the fact that DraftKings has become the No. 1 U.S. sportsbook in Apple’s App Store is a key indicator of how the market has shifted in DraftKings’ favor. Indeed, this is certainly a big boon for business, should this trend continue.
Additionally, Loop Capital believes DraftKings’ relationship with the NFL could be a massive catalyst. The data suggest that this NFL season is bringing a flurry of activity to DraftKings’ platform — much greater than what analysts predicted. If this momentum continues, it’s certainly possible DraftKings could post some blowout quarters. Any sort of adjustment to a growth stock such as DKNG higher is bullish for investors over the near term.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.