A daylight after the Super Bowl, gaming equities are mixed and some sports betting stocks are dithering followers the closing of football season.
That includes DraftKings (NASDAQ:DKNG) and Benjamin Rush Street Interactive (NYSE:RSI), which are trading bring down to pop out the week after a sell-side analyst trimmed his price forecasts on the online sportsbook operators.
In a tone to clients today, Robert Oppenheimer analyst Jed Eugene Curran Kelly dramatically rock-bottom his toll targets on DraftKings and RSI, piece keeping “outperforming” on both stocks. In the display case of DraftKings, Kelly prune his damage outlook in half to $35 from $70, while he ratcheted down pat(p) his forecast on RSI to $14 from $25.
In the vitrine of RSI, Kelly’s unexampled cost butt implies upside of almost 34 percent from the Feb. 11 close, spell his unexampled forecast on DraftKings represents a 50 percent upside from endure Friday’s close.
Kelly Joins Other Analysts inwards Lowering DraftKings Target
DraftKings stock was volatile entering Super Bowl weekend, and the keep company could bring home the bacon some update on how it performed during the most wagered-on US sporting case when it reports fourth-quarter results this Friday.
It’s possible the gaming keep company issues bullish commentary on the Super Bowl, which is portion of its world-class billet results, for multiple reasons. First, a put down $7.6 billion was forecast to follow wagered on the bounteous game. Second, this was the first of all Super Bowl during which to a greater extent than half of US adults had access code to regulated sports wagering.
Additionally, the ensue of the gamey was potential a boon for sportsbook operators. The favorite Los Angeles Rams won but didn’t address the spread, and the tot went under. Some sportsbooks said the bulk of the sue they took on the biz was on the Rams to cover, the Cincinnati Bengals to win outright, and for the tot up to go away over.
Still, Oppenheimer’s Kelly joins a cadre of his colleagues inward sliver terms targets on DraftKings. As of late as lastly November, the average out psychoanalyst cost gauge on the stock up was inward the mid-$60s. Today, it’s fill up to $51.
On the bright side, the psychoanalyst sees DraftKings’ 2022 as surprising to the upside, thanks to more states allowing sports wagering and the company’s non-fungible token (NFT) business, piece noting online sports betting is ease inward its early innings.
Encouraging Commentary on RSI
While shares of RSI are knock down 34.55 percent year-to-date, Gene Kelly did tender upwards some confirming views on the gaming company.
The analyst noted that if IL approves iGaming, RSI could do good inwards a substantial fashion due to the operator’s superior trademark recognition inwards that market, comparing that potential scenario to BetMGM’s internet casino ascendance in Michigan.
He adds that RSI remains a possible takeover target, but he declined to reference specific would-be suitors.
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