DKNG Stock Price Prediction: Why Morgan Stanley Thinks DraftKings Is a Big Opportunity

DraftKings (NASDAQ:DKNG) stock is gaining on Wednesday after Morgan Stanley analyst Thomas Allen upgraded the gambling company’s shares.

Image of the DraftKings app on a smartphone screen representing DKNG Stock.

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Allen starts off their upgrade for DKNG stock by bumping it up from an equal rate rating to a new overweight rating. That matches the analyst consensus buy rating, which comes from 17 buys, eight holds, and one sell.

One thing that the Morgan Stanley analyst didn’t change is the $31 price target for DKNG stock. Even so, that still represents a potential 60.5% upside over the stock’s closing price on Tuesday. However, it is lower than the analyst consensus price prediction of $56.13 per share.

So what has Allen switching to a bull stance for DNKG stock? Here’s what the analyst had to say in a note obtained by Barron’s.

“While we and the market have been focused on near- to medium-term profit concerns, we believe at the current price one should not ignore that DKNG is a leading market share player in what will be a very large profitable market.”

The positive rating for DNKG stock brings with it heavy trading of the shares today. As of this writing, more than 31 million shares of the company’s stock have changed hands. That’s a massive jump over the company’s daily average trading volume of about 18.3 million shares.

DKNG stock is up 13.6% as of Wednesday morning but is still down 21% since the start of the year.

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On the date of publication, William White 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 Publishing Guidelines.

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