Shares of online sports gambling forum DraftKings (DKNG) - Get Report jumped more than 6% Tuesday after analysts at Loop Capital initiated coverage with a buy rating and a Wall Street-high price target of $100 per share.
DraftKings is the "undisputed share leader and biggest beneficiary" of a burgeoning online sports gaming industry, according to analyst Daniel Adams.
"The most significant drivers are online sports betting and iGaming. We estimate the true total addressable market for these markets is over $30 billion in the U.S. at maturity, significantly greater than the ~$20 billion total addressable market that other analysts are modeling,” Adams said.
Shares of DraftKings were rising 6.6% to $45.54 per share on Tuesday afternoon.
Last week, DraftKings said that it expects 2020 revenues to rise between 25% and 30% year-over-year to an all-time high of $560 million. For 2021, the company expects revenue to range between $750 million and $850 million.
"Our product offerings and scalable platform provide a distinctive and personalized experience for customers across the ten states where we operate mobile sports betting today, and we look forward to entering additional jurisdictions at the earliest opportunity," said CEO Jason Robins.
DraftKings said its loss for the three months ending in September was pegged at a wider-than-forecast $347.75 million, but noted that group revenues nearly doubled from last year to $132.8 million as professional sports in the United States, particularly NFL football, returned to the field.