Wells Fargo upgraded DKNG to "overweight" from "equal weight"
DraftKings Inc (NASDAQ:DKNG) stock is up 2.5% to trade at $35.16 at last glance, after an upgrade from Wells Fargo to "overweight" from "equal weight," with a price-target hike to $49 from $31.
The majority of analysts leaned bullish toward DKNG coming into today, with 27 of the 33 in coverage sporting a "buy" or better rating. Additionally, the 12-month consensus target price of $45.38 is a 29.1% premium to current levels.
The equity sports a 19.9% six-month lead, with support stemming from its 40-day moving average. Despite today's pop, the $37.50 level remains a staunch level of pressure, rejecting rallies twice already this month.
Options traders have also been firmly optimistic of late, per the stock's 10-day call/put volume ratio of 7.29 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 85% of readings from the last year.
It's also worth noting that, with an elevated of 94 out of 100, shares have consistently realized higher volatility than its options have priced in.