Draftkings is a Boston-based online sports betting and fantasy sports company. The stock is currently around $49, putting it about 31% below its 52-week high of $74.38.
At its current level, DKNG stock is well below where analysts expect it to be. Analysts have set its median price target at $74 a share. The high mark on the share price is $105. The median price target would represent a gain of more than 40% from where the stock currently trades.
DKNG stock is expected to take off in this year’s second half as sports resume. With the upcoming NFL football season and a growing number of U.S. states legalizing sports betting, DraftKings can generate revenue and cover budget shortfalls coming out of the Covid-19 pandemic.
The company continues to perform well financially. Draftkings posted revenues of $312 million in its first-quarter earnings. That’s nearly 35% better than analyst estimates of $231.5 million and shows 175% year-over-year growth.