DraftKings (NASDAQ:DKNG) stock is on the move Monday after getting an upgrade from Wells Fargo analyst Daniel Politzer.
That upgrade has Politzer boosting shares of DKNG stock from an “equal weight” rating to an “overweight” rating. To put that in perspective, the analyst consensus rating for shares is a “hold” based on 30 opinions.
To go along with that upgrade, the Wells Fargo analyst also increased their price target for DKNG stock from $28 per share to $37 per share. For comparison, the analyst consensus price prediction for DKNG stock is $30.48 per share. The Wells Fargo target also represents a potential upside of 16.6% for the stock.
Why the Bullish Stance on DKNG Stock?
Here’s what Politzer had to say about DraftKings in a note to clients obtained by CNBC:
“We learned a lot last week: DKNG is capturing share, capitalizing on an improved product, and limiting opex growth […] EBITDA is inflecting more quickly/steeply than we previously envisioned, and we expect its op. Momentum to continue.”
Investors will note that the upgrade for DKNG stock comes after it beat estimates in its second-quarter earnings report. That also resulted in the sports betting company increasing its revenue outlook for the year.
DKNG stock movement today has more than 5 million shares changing hands as of this writing. That’s still well below its daily average trading volume of about 11.2 million shares. With this movement comes a 2.3% drop to the company’s shares as of Monday morning.
Investors can find more of the latest stock market news ready to go below!
We’ve got all of the hottest stock market coverage that traders need to know about on Monday! That includes what’s going on with shares of Palantir (NYSE:PLTR) stock, Sovos Brands (NASDAQ:SOVO) stock and Bionano Genomics (NASDAQ:BNGO) stock today. All of that news is ready to go at the following links!
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On the date of publication, William White did not hold (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.
