Online sports betting (OSB) company DraftKings was just deemed a top pick for 2021 by Rosenblatt Securities analyst Bernie McTernan. Recently, the five-star analyst reiterated a Buy rating and $65 price target.
Amid the ongoing public health crisis, state budgets are getting worse, and as a result, new states are considering passing legislation to allow OSB and iGaming.
“We continue to find DKNG’s equity attractive as a pure play and top two player in the emerging online sports betting (OSB) and iGaming markets. Near-term, we are focused on the entry into new states like MI and VA,” McTernan mentioned.
Most important, however, for the company will be “the outlook for new legislation,” in McTernan’s opinion.
“As states evaluate the impact of COVID-19 on their budgets we continue to believe it will push states to consider OSB and iGaming legislation. This scenario appears to potentially be playing out in NY as a $15 billion state deficit and question marks on if and how much federal aid the state will get has seemingly driven opponents of the bill, like Governor Cuomo to potentially be a support,” McTernan said.
According to TipRanks, McTernan is tracking an 78% success rate and 36.9% average return per rating.