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DraftKings Can Reach $4.3B Revenue By 2030: Macquarie

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DraftKings Can Reach $4.3B Revenue By 2030: Macquarie

A new analyst has jumped in the bullish camp for a leader in online sports betting and iGaming.

The DraftKings Analyst: Macquarie Research analyst Chad Beynon initiates DraftKings Inc (NASDAQ: DKNG) stock with an Outperform rating and a price target of $65.

The DraftKings Takeaways: Beynon believes DraftKings is well positioned to be one of the top two companies in the high growth online sports betting and iGaming market.

Beynon gives an estimate of online sports betting and iGaming reaching $33.7 billion by 2030, which is 87% ahead of the $18 billion estimate DraftKings has assigned. The online sports betting and iGaming market was worth $1.4 billion in 2019.

“We think DraftKings can sustainably maintain top two share given their marketing expertise, database, brand awareness and leading technology, which would lead to the creation of a multibillion-dollar enterprise,” Beynon wrote in a note.

Beynon sees DraftKings hitting revenue of $535 million in 2020, crossing $1 billion in 2022, and hitting $4.3 billion in 2030. Beynon’s EBITDA estimate is $1.5 billion for 2030 versus a long term $1.2 billion estimate from the company.

Beynon praises DraftKings acquisition and ownership of SBTech and would like to see additional acquisitions to expand DraftKings reach.

“We welcome more vertical integration (payment processors, market access) or a broadening TAM (eSports, video games) or market (European opportunities),” wrote Beynon.

DKNG Price Action: Shares of DraftKings are down 5% to $47.73 Thursday.

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Latest Ratings for DKNG

DateFirmActionFromTo
Oct 2020RosenblattMaintainsBuy
Oct 2020OppenheimerMaintainsOutperform
Oct 2020Deutsche BankInitiates Coverage OnHold

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