What is Wells Fargo's outlook on DraftKings stock?

Wells Fargo upgraded DraftKings to overweight, raising its price target to $49, indicating a belief in significant future growth.

When is DraftKings expected to release its Q4 results?

The article suggests DraftKings is expected to report strong results for the fourth quarter soon.

How large is the market for DraftKings' event contracts?

The total addressable market for event contracts is estimated to be worth approximately $75 billion.

Home / Business and Economy / Wells Fargo Bets Big on DraftKings Future

Wells Fargo Bets Big on DraftKings Future

15 Jan

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Summary

Wells Fargo upgraded DraftKings to overweight with a price target increase.
The company's Q4 report is expected to exceed guidance, boosting investor confidence.
DraftKings plans expansion into event contracts with a large addressable market.

Wells Fargo Bets Big on DraftKings Future

Wells Fargo has significantly upgraded its rating on DraftKings, moving from "equal weight" to "overweight" and raising the price target to $49. This optimistic outlook is predicated on the anticipation of a robust fourth-quarter earnings report, which is expected to surpass the company's own guidance. Such results are projected to alleviate investor concerns regarding competitive dynamics within the prediction market space.

The bank forecasts DraftKings to report fourth-quarter revenue between $273 million and $287 million, exceeding the high-end of its own guidance. This performance is expected to bolster investor confidence. Furthermore, DraftKings' strategic expansion into event contracts, with plans to launch a full suite in 17 states, represents a significant growth opportunity, tapping into an estimated $75 billion total addressable market.