In our last video, we highlighted opportunity in DraftKings (DKNG).
Not only did it become excessively oversold on RSI, MACD, and Williams’ %R, but it found and held double bottom support, as we mentioned. From a current price of $48.50, we have an initial price target of $60. Longer-term, we’d like to see it up to $100 a share.
Helping, Cowen analyst Stephen Glagola, as quoted by Casino.org upgraded the DKNG stock to an outperform rating with a price target of $70. “Current legalization trends suggest to us that the 2H:21-FY22 period remains robust, and could result in DKNG being live in states representing up to 51.2% of the adult population by 2022 end,” he said.
We also have to consider that with more states legalizing sports gambling, we could be looking at a potential $24 billion market by 2030, says Bank of America.
One of the latest states to push for legalization is Florida.
“The Florida Senate approved the deal Tuesday in a 38-1 vote, but the agreement still needs federal approval, and the U.S. Department of Interior has 45 days after the bill is signed by DeSantis to make a decision. Sports betting under the deal can’t begin until Oct. 15., and lawsuits from groups opposed to the expansion of gambling could delay the start date further,” as reported by Yogonet Gaming News.
With support only building, investors may want to use weakness in DKNG as an opportunity.