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Dec. 7, 2020, 12:17 p.m. EST

DraftKings stock falls after J.P. Morgan analyst gives a not-bullish endorsement

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By Tomi Kilgore

Shares of DraftKings Inc. /zigman2/quotes/213120645/composite DKNG -9.36% fell 1.4% in midday trading Monday, after J.P. Morgan analyst Daniel Politzer gave the online-gambling and fantasy-sports company a not-quite bullish endorsement. The stock was headed for a third-straight loss, and has lost 4.9% during that stretch. Politzer initiated DraftKings with a neutral rating and $48 stock price target, which is 1.2% below current levels. Politzer said "there is a lot to like" about the company, including its position as a leader in the sports betting marketplace, signs that U.S. sports bettors like to stay with the platforms they use and the fact that the company holds "first-mover advantages" in the daily fantasy sports space. "However, we believe these positives are balanced" by concerns over valuation, increasing competition and the pace of number of states that are legalizing sports betting and igaming may fall short of his expectations. "With several pure-play USSB/iGaming firms in the process of going public...we could envision a scenario whereby [DraftKings's] growth and profitability becomes more closely scrutinized by investors," Politzer wrote in a note to clients. The stock has rallied 31.3% over the past three months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% has advanced 7.8% over the same time.

/zigman2/quotes/213120645/composite
US : U.S.: Nasdaq
$ 28.37
-2.93 -9.36%
Volume: 30.23M
Dec. 3, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$22.68 billion
Rev. per Employee
$236,358
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/zigman2/quotes/210599714/realtime
US : S&P US
4,538.43
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p
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