{"id":2638,"date":"2024-09-26T21:29:35","date_gmt":"2024-09-26T21:29:35","guid":{"rendered":"http:\/\/stakery.io\/?p=2638"},"modified":"2024-10-09T14:25:33","modified_gmt":"2024-10-09T14:25:33","slug":"fanduel-bullishness-boosts-draftkings-too-say-analysts","status":"publish","type":"post","link":"http:\/\/stakery.io\/index.php\/2024\/09\/26\/fanduel-bullishness-boosts-draftkings-too-say-analysts\/","title":{"rendered":"FanDuel Bullishness Boosts DraftKings, Too, Say Analysts"},"content":{"rendered":"

They\u2019re direct competitors, but when it comes to FanDuel parent Flutter Entertainment (NYSE: FLUT) and DraftKings (NASDAQ: DKNG), what\u2019s good for one can benefit the other.<\/p>\n

\"DraftKings
A DraftKings billboard appears at Times Square in New York City. Analysts believe good news from rival FanDuel is benefiting DraftKings, too.(Image: NASDAQ)<\/figcaption><\/figure>\n

That was the case Wednesday when Flutter told investors it sees the total addressable market for gross gaming revenue (GGR) in North America swelling to $70 billion by 2027. The forecast includes $63 billion<\/a> attributable to the US, which is 1.5x higher than the operator\u2019s prior estimates and doesn\u2019t include the addition of new states into the iGaming or sports betting folds. That\u2019s bullish for FanDuel, but the outlook also sparked a rally in shares of DraftKings.<\/p>\n

\n

In a note to clients today, JPMorgan analyst Joseph Greff said that when applying Flutter\u2019s FanDuel projections to DraftKings, the implication is that DraftKings could generate as much as $8.2 billion in revenue and $1.9 billion in cash flow in 2027.<\/p>\n<\/div>\n

\u201c(FanDuel\u2019s) upbeat scale commentary is positive for DKNG and suggests the sector is really a two-horse race,\u201d observed the analyst. \u201cWe like it (the stock) here and see it as somewhat contrarian and a fresh money idea.\u201d<\/strong><\/p>\n

FanDuel Outlook Adds to DraftKings Rally<\/h2>\n

Flutter\u2019s constructive commentary on the North American market is pertinent to DraftKings for another reason. In the US, that company and FanDuel hold a duopoly<\/a> in which they control more than 70% of the market. That status has been reaffirmed through the first three weeks of the 2024 NFL season when DraftKings and FanDuel combined to garner 55% of all downloads of mobile sports betting applications, according to Eilers & Krejcik Gaming (EKG).<\/p>\n

DraftKings\u2019 pop on the back of the Flutter announcement added to a surge that\u2019s seen the stock rally nearly 15% off its August lows. Analysts believe DraftKings can benefit from many of the same catalysts that are boosting FanDuel.<\/p>\n

\n

We believe DKNG should see similar upside as the company continues to improve its parlay offering and parlay betting becomes more mainstream over time,\u201d wrote Truist analyst Barry Jonas in a report.<\/p>\n<\/blockquote>\n

He added that Flutter\u2019s strong ex-US exposure could compel DraftKings to look outside this country for deals in the future and that if there is an area in which FanDuel clearly bests its rival, it is risk-management where FanDuel\u2019s strength in pricing accuracy \u201chelps to limit the variability of short-term results.\u201d<\/p>\n

DraftKings Insiders Still Selling<\/h2>\n

While DraftKings stock has rallied over the past month, some insiders have sold into that strength. A Form 144 filing with the Securities and Exchange Commission (SEC) indicated that on Sept. 25, co-founder Paul Liberman sold 643,654 shares, grossing proceeds of $26.39 million. That continues a trend of rampant insider selling<\/a> at the gaming company.<\/p>\n

Liberman\u2019s sale of DraftKings stock came after some of his restricted shares in the firm vested. He also sold shares in August.<\/p>\n

Some retail investors have decried the level of insider selling at DraftKings, claiming those transactions are stifling further upside for ordinary shareholders.<\/strong><\/p>\n

The post FanDuel Bullishness Boosts DraftKings, Too, Say Analysts<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

They\u2019re direct competitors, but when it comes to FanDuel parent Flutter Entertainment (NYSE: FLUT) and DraftKings (NASDAQ: DKNG), what\u2019s good for one can benefit the other. A DraftKings billboard appears at Times Square in New York City. Analysts believe good news from rival FanDuel is benefiting DraftKings, too.(Image: NASDAQ) That was the case Wednesday when…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"_links":{"self":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2638"}],"collection":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/comments?post=2638"}],"version-history":[{"count":1,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2638\/revisions"}],"predecessor-version":[{"id":2639,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/posts\/2638\/revisions\/2639"}],"wp:attachment":[{"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/media?parent=2638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/categories?post=2638"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/stakery.io\/index.php\/wp-json\/wp\/v2\/tags?post=2638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}