{"id":1682608,"date":"2022-05-02T11:55:33","date_gmt":"2022-05-02T15:55:33","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=211609"},"modified":"2022-05-02T11:55:33","modified_gmt":"2022-05-02T15:55:33","slug":"draftkings-stock-rises-on-bullish-morgan-stanley-comments","status":"publish","type":"station","link":"https:\/\/platogaming.com\/plato-data\/draftkings-stock-rises-on-bullish-morgan-stanley-comments\/","title":{"rendered":"DraftKings Stock Rises on Bullish Morgan Stanley Comments"},"content":{"rendered":"\n<p>DraftKings (NASDAQ:DKNG) stock is getting a much-needed lift after Morgan Stanley issued constructive comments on the battered online sportsbook operator.<\/p>\n<figure id=\"attachment_211610\" aria-describedby=\"caption-attachment-211610\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-211610 lazyload\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments.jpg\" data-src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments.jpg\" alt=\"DraftKings stock\" width=\"1200\" height=\"675\" data-srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-1.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-2.jpg 768w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-3.jpg 1536w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-4.jpg 1920w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/> <noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-211610\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments.jpg\" alt=\"DraftKings stock\" width=\"1200\" height=\"675\" srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-1.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-2.jpg 768w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-3.jpg 1536w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/05\/draftkings-stock-rises-on-bullish-morgan-stanley-comments-4.jpg 1920w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/noscript><figcaption id=\"caption-attachment-211610\"class=\"text-description\">Morgan Stanley analyst Thomas Allen in a 2016 <em>CNBC<\/em> interview. The bank is bullish on DraftKings stock. (Image: <em>CNBC<\/em>)<\/figcaption><\/figure>\n<p>DraftKings is higher by more than 5% in midday trading, though that\u2019s barely enough to dent an almost 76% decline over the past year. Hindered <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/draftkings-rallied-this-week-but-jim-chanos-remains-bearish\/\">by lack of profitability<\/a> and a market environment that doesn\u2019t take kindly to such stocks, DraftKings hasn\u2019t closed above its 200-day moving average since last September.<\/p>\n<p>Still, Morgan Stanley is positive about the gaming company, citing the familiar catalyst of total addressable market growth.<\/p>\n<blockquote class=\"main-blockquote\">\n<p><strong>We forecast legal US sports betting &amp; iGaming to increase from &lt;$1.5 billion in 2019 to $21 billion in 2025 as more states legalize and spend per capita rises,\u201d<\/strong> said Morgan Stanley equity strategist Michelle Weaver \u00a0in a report to clients.<\/p>\n<\/blockquote>\n<p>DraftKings stock is one of 45 on the bank\u2019s high conviction North American equities list.<\/p>\n<h2>Morgan Stanley, a DraftKings Supporter<\/h2>\n<p>Sheer price action confirms it\u2019s been difficult to be bullish on DraftKings in recent months. But Morgan Stanley is in that camp.<\/p>\n<div class=\"callout\">\n<p>In March, analyst Thomas Allen <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/morgan-stanley-remains-bullish-on-draftkings-stock\/\">reiterated an \u201coverweight\u201d rating<\/a> on the stock, with a $31 price target. That\u2019s more than double where the shares currently reside. While acknowledging DraftKings is dealing with near-term losses, the analyst argues investors are being shortsighted and that companies making the transition to profitable from money-losing can deliver significant upside. Allen believes DraftKings can join that group.<\/p>\n<\/div>\n<p>The analyst adds that while the US iGaming and online sports betting markets will eventually be \u201cvery large,\u201d there will be a small number of market share winners, and DraftKings will be one of those operators.<\/p>\n<p>DraftKings joins Amazon (NASDAQ:AMZN), Chipotle (NYSE:CMG), Ferrari (NYSE:RACE), and Ross Stores (NASDAQ:ROST) as the consumer discretionary names on the Morgan Stanley high conviction list.<\/p>\n<p><strong>The Boston-based sportsbook giant is the only gaming name in the group.<\/strong><\/p>\n<h2>Waiting on DraftKings Earnings<\/h2>\n<p>The daily fantasy sports (DFS) behemoth reports first-quarter results before the open of US markets on Friday, May 6. Analysts are expecting a loss of $1.24 per share. Over the past month, there\u2019s been upward revision and two cuts to that estimate by analysts following DraftKings stock, according to Zacks Investment Research.<\/p>\n<p>Investors will likely pay close attention to any update to the 2022 guidance the company offers on Friday. In February, <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/draftkings-2022-outlook-disappoints-stock-tumbles\/\">the operator forecast 2022<\/a> sales of $1.85 billion to $2 billion on earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $825 million to $925 million.<\/p>\n<p><strong>That outlook doesn\u2019t account for the company\u2019s still-pending launch in Ontario, Canada. Nor does it factor in sports betting going live in Maryland.<\/strong><\/p>\n<p>Investors will also likely want an update on the acquisition of Tilman Fertitta\u2019s Golden Nugget Online Gaming (NASDAQ:GNOG). Since that deal was announced last August, shares of both the suitor and target plunged. But Fertitta <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/golden-nugget-owner-tilman-fertitta-king-crab-priced-out-market\/\">said it remains on track to close<\/a>\u00a0and that he\u2019s committed to being a long-term DraftKings shareholder.<\/p>\n<p>The post <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-on-supportive-morgan-stanley-comments\/\">DraftKings Stock Rises on Bullish Morgan Stanley Comments<\/a> appeared first on <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\">Casino.org<\/a>.<\/p>\n<ul class=\"plato-article-bottom-links\">\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.coinsmart.com\/europe\/?irclickid=yCMxLCU1uxyLWzG0Rw0UrUzuUkEV0C2N%3ATwq0A0&#038;irgwc=1\" class=\"plato-coinsmart-gid\">Coinsmart. 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Free Trial.<\/a><\/li>\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-rallies-on-supportive-morgan-stanley-comments\/\">Source: https:\/\/www.casino.org\/news\/draftkings-stock-rallies-on-supportive-morgan-stanley-comments\/<\/a><\/li>\n<\/ul>\n","protected":false},"author":1,"featured_media":1682609,"template":"","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[]},"genre":[102],"artist":[106],"mood":[],"activity":[],"station_tag":[5580,5581,5764,12278,12801,3619,6373,5236,6107,5381,5556,5210,5584,7759,3787,12959,13123,5451,3788,8990,6032,5387,7889,3794,5655,3795,3632,5684,3799,6050,13779,5397,6977,3802,7707,10598,8249,3638,5609,177,5406,3820,5408,13353,3643,5468,3715,3717,5413,6966,3751,6328,3646,5613,12637,5239,3648,5530,5760,5476,5622,3652,5536,6366,3654,3829,13603,3831,12550,12379,11969,5570,5537,5738,6334,3754,3755,5540,8916,5226,5480,7698,5426,5881,3670,9976,5954,5742,5546,5547,5439,12636,3837,3840,6019,6020,12926,3680,5697,5493,5494,13800,8153,5444,6141,8330,5888,5636,5577,3690,5967,6479,3871,3732,7386,5279],"_links":{"self":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station\/1682608"}],"collection":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media\/1682609"}],"wp:attachment":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media?parent=1682608"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/genre?post=1682608"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/artist?post=1682608"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/mood?post=1682608"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/activity?post=1682608"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station_tag?post=1682608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}