Why Benchmark Is Staying Bullish on DraftKings Inc. (DKNG) Despite New York Weakness

Group 1 - DraftKings Inc. (NASDAQ:DKNG) is currently viewed as a stock under $50 with potential for investment, receiving a 'Buy' rating from Benchmark with a price target of $37, indicating an upside potential of 18% despite recent weak performance in the New York online sports betting market [1] - The New York online sports betting market experienced a significant downturn in Week 19, with a 2.0% year-over-year decrease in handle and a 39.9% year-over-year drop in revenue [1] - Texas Capital Securities initiated coverage of DraftKings with a price target of $39, labeling it as a "blue chip online gaming stock," although the specific rating (buy, hold, or sell) was not disclosed [2] Group 2 - Texas Capital Securities highlighted factors contributing to DraftKings' expected stock volatility, including its position as a pure play in online gaming, potential online gaming tax increases, investor concerns regarding hold and win rates, and the growth of prediction markets [3] - DraftKings operates as a digital sports entertainment and gaming company based in Massachusetts, offering services such as online sports betting, lottery courier services, sportsbooks, and iGaming [4]