DraftKings (NASDAQ:DKNG) stock is gaining on Wednesday after Morgan Stanley analyst Thomas Allen upgraded the gambling company’s shares.
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.
Investors looking for more hot stock market news today will want to stick around!
InvestorPlace offers up deep dives into the stock market with our daily coverage of the space. Among that is what to expect from the Federal Reserve meeting today. what’s up with Vinco Ventures (NASDAQ:BBIG) shares, as well as the news sending Gatos Silver (NYSE:GATO) stock lower today. You can get up to speed on these matters by checking out the links below!
More Stock Market News for Wednesday
- Fed Meeting Today: 13 Things That Have Investors on Edge Ahead of the FOMC Meeting
- BBIG Stock News: 8 Big Takeaways From the Latest Cryptyde Spinoff Filing
- Gatos Silver News: Why GATO Stock Is Getting Slammed Today
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 InvestorPlace.com Publishing Guidelines.