DraftKings (NASDAQ:DKNG) was added as a brand new greatest concept lengthy at Hedgeye because the sports activities betting firm seems to be making progress on fixing a few of its points and reversing misplaced market share. Draftking shares fell 4.9% regardless of the constructive name.
“Similar state revenues are re-accelerating and the brand new state outlook is as brilliant as ever,” Hedgeye analyst Todd Jordan and Sean Jenkins wrote in a word on Thursday . “The promotional and exterior advertising and marketing atmosphere seems to be rather less aggressive than final yr with CZR scaling again and WYNN basically pulling out. DKNG over indexes to soccer so the timing is true for additional sequential market share positive aspects”
The brand new lengthy name come after Hedgeye was initially quick on DraftKings (DKNG) in January of final yr resulting from what it referred to as on the time an “obscene” valuation mixed with different destructive catalysts reminiscent of declining market share.
Whereas the macro atmosphere is destructive for the sector, DraftKings on a relative foundation might profit from just a few secular tailwinds.
Hedgeye is internet hosting a presentation on DKNG at 2pm.
Draftkings (DKNG) quick curiosity is 10%.
On Monday Wells Fargo mentioned sports activities betting quantity is reported to have been sturdy as soon as once more for the third weekend of the NFL season, though there has additionally been an uptick in promotions.