DraftKings partners with Dan Le Batard to reach more punters, Wall Street remain bullish
DraftKings continues moving further into the media sector with a content distribution deal with Meadowlark Media.
The sportsbook operator is also gaining rights to distribute Le Batard’s podcast, which averages 10 million to 12 million downloads, for three years. The target is to generate revenue of those distribution rights while offering another avenue for advertising and client engagement.
The Le Batard suite of shows will display DraftKings’ odds, betting data, broader sportsbook and daily fantasy sports information.
Wall Street remain bullish on DraftKings despite recent struggles
Needham analyst Bernie McTernan initiated coverage of the gaming equity with a “buy” rating and an $81 price target.
“We see DraftKings stock as a leader in the emerging North America online gambling market, a $35 billion market opportunity,” said the analyst in a note to clients.
“Despite mixed results in New York, we see the current regulatory environment as supportive, which should lead to a significant growth in legislation, a key reason our ’22 and ’23 estimates are above consensus.”
“We see a 3:1 risk-reward in our bull case vs bear case targets, and importantly envision a higher probability of our bull case playing out vs our bear case.”
Editing by Rachel Hu