Benzinga | Jan 26, 2022 07:05AM EST

Morgan Stanley Sees 60% Upside In This Sports Betting Company - Read Why

* Morgan Stanley analyst Thomas Allen upgraded DraftKings Inc (NASDAQ:DKNG) to Overweight from Equal Weight with an unchanged price target of $31, implying a 60.46% upside.

* Allen said that the stock's recent pullback presents an opportunity to invest for the long term.

* The analyst noted investors "should not ignore" that DraftKings is a leading player in what will be a very large and profitable U.S. sports betting and internet gaming market.

* Allen added data from New York's first several days of legal sports betting remind how big the opportunity is, with the implied market revenue run rate well ahead of Morgan Stanley's previous expectations.

* Price Action: DKNG shares traded higher by 8.18% at $20.90 in premarket on the last check Wednesday.