DraftKings: 3 Positive Takeaways From the Turner Partnership, , on October 20, 2020 at 12:47 am

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On October 20, 2020
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After charging off the starting line and posting huge market gains in 2020, recent events have put a halt to DraftKings’s (DKNG) spectacular debut as a publicly traded company.A recent share dilution, reports of new coronavirus infections in the NFL and in college football and this week’s lockup expiration (i.e. the end of the period when early investors and insiders are not allowed to sell shares into the market) – have all played their part in the stock declining by 30% since early October’s highs.But it has not all been bad news. Last week DraftKings announced it had inked a new deal with Warner Media’s Turner Sports. Specifically, DraftKings will get the exclusive rights to provide fantasy sports content and sports betting on select television broadcasts of Turner Sports and Bleacher Report.It is on this side of the equation that Rosenblatt analyst Bernie McTernan believes investors should focus on. McTernan counts 3 reasons why the deal is a positive catalyst.For one, the analyst believes “Bleacher Report is an underrated sports media asset.” It is currently second only to ESPN in Instagram and Twitter followers and is the 22nd most used sports app in the iOS app store.Secondly, Turner “has strategic sports rights.” The analyst explained, “While the deal excludes NBA content given their existing partnership with FanDuel, Turner owns a portion of the rights for NCAA tournament games through 2032 and the MLB which Turner recently renewed through 2028.”Lastly, media companies’ increasing acceptance of sports betting should “help grow market adoption and potentially legislation.” For example, TNT recently used TNT Bets in a simulcast of the NBA’s Western Conference Finals playoff coverage, incorporating betting odds and analysis in its live stream.Now, following DraftKings’ latest announcement, the 5-star analyst notes, “All major sports media companies have a sports betting partnership.”Overall, there’s no change to McTernan’s rating which stays a Buy, while the $65 price target stays put, too. Investors could be pocketing gains of 46%, should his thesis play out over the coming months. (To watch McTernan’s track record, click here)DraftKings has decent support from the rest of the Street. The stock has a Moderate Buy consensus rating based on 12 Buys and 6 Holds. The forecast is for 28% upside in the year ahead, given the average price target clocks in at $57.35. (See DraftKings stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

DraftKings: 3 Positive Takeaways From the Turner PartnershipAfter charging off the starting line and posting huge market gains in 2020, recent events have put a halt to DraftKings’s (DKNG) spectacular debut as a publicly traded company.A recent share dilution, reports of new coronavirus infections in the NFL and in college football and this week’s lockup expiration (i.e. the end of the period when early investors and insiders are not allowed to sell shares into the market) – have all played their part in the stock declining by 30% since early October’s highs.But it has not all been bad news. Last week DraftKings announced it had inked a new deal with Warner Media’s Turner Sports. Specifically, DraftKings will get the exclusive rights to provide fantasy sports content and sports betting on select television broadcasts of Turner Sports and Bleacher Report.It is on this side of the equation that Rosenblatt analyst Bernie McTernan believes investors should focus on. McTernan counts 3 reasons why the deal is a positive catalyst.For one, the analyst believes “Bleacher Report is an underrated sports media asset.” It is currently second only to ESPN in Instagram and Twitter followers and is the 22nd most used sports app in the iOS app store.Secondly, Turner “has strategic sports rights.” The analyst explained, “While the deal excludes NBA content given their existing partnership with FanDuel, Turner owns a portion of the rights for NCAA tournament games through 2032 and the MLB which Turner recently renewed through 2028.”Lastly, media companies’ increasing acceptance of sports betting should “help grow market adoption and potentially legislation.” For example, TNT recently used TNT Bets in a simulcast of the NBA’s Western Conference Finals playoff coverage, incorporating betting odds and analysis in its live stream.Now, following DraftKings’ latest announcement, the 5-star analyst notes, “All major sports media companies have a sports betting partnership.”Overall, there’s no change to McTernan’s rating which stays a Buy, while the $65 price target stays put, too. Investors could be pocketing gains of 46%, should his thesis play out over the coming months. (To watch McTernan’s track record, click here)DraftKings has decent support from the rest of the Street. The stock has a Moderate Buy consensus rating based on 12 Buys and 6 Holds. The forecast is for 28% upside in the year ahead, given the average price target clocks in at $57.35. (See DraftKings stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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