Digital sports entertainment and gaming services provider DraftKings (NASDAQ:DKNG) has entered into a multi-year sports betting partnership with Barstool Sports. The deal announcement came within an hour of the Kansas City Chiefs beating the San Francisco 49ers in Sunday’s Super Bowl LVIII. According to Sportico, Barstool’s separation from Penn (NASDAQ:PENN) prohibited the company from teaming up with another sportsbook until the end of the NFL season.
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Previously, Penn spent nearly $550 million to acquire Barstool but later took a $850 million write-off after deciding to team up with ESPN on a new sportsbook.
With this new deal, DKNG becomes the exclusive betting partner of Barstool. While details remained under wraps, Barstool stands to benefit from increased referrals. In turn, DKNG will get more eyeballs for its odds.
Separately, DraftKings is scheduled to report its fourth-quarter results on February 15. Analysts expect the company to post an EPS of $0.08 on revenue of $1.24 billion for the quarter. In the year-ago quarter, DKNG’s EPS of -$0.53 had outpaced estimates by $0.09.
What Is the Target Price for DKNG Stock?
Overall, the Street has a Strong Buy consensus rating on DraftKings, and the average DKNG price target of $42.77 implies the stock may be hovering at fair valuation levels. That’s after a mega 160% rally in the company’s share price over the past year.
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