Guggenheim initiates DraftKings coverage at buy, says stock could jump 30%

Tennys Sandgren of the United States returns a ball during the singles match against Christopher Eubanks of the United States during the DraftKings All-American Team Cup on July 4, 2020 in Atlanta, Georgia.

Carmen Mandato | Getty Images

The market opportunity for online sports betting will be bigger than many investors believe, and DraftKings is well-positioned to remain one of the biggest names in the space, Guggenheim said in a note to clients Friday.

Guggenheim analyst Curry Baker initiated coverage of the stock with a buy rating, saying the overall sports betting and i-gaming business in North America could top $70 billion and DraftKings should be able to carve out a sizable piece of that.

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