By Christiana Sciaudone
Investing.com — Betting on gambling is losing its luster.
DraftKings (NASDAQ:) is down more than 4% after Berenberg initiated coverage with a sell. The shares were also called a best idea short by Hedgeye.
The online gambling company had as U.S. states have begun to legalize the activity amid a need for tax revenue and closures of businesses because of efforts to stem the spread of Covid-19.
According to Hedgeye, DraftKings has “a big valuation” that “may not withstand” the expected decelerating growth post vaccination along with “the impact of market share pressure on sentiment,” The Fly reported.
Berenberg gave the gambling group a price target of $41. That compares to Piper Sandler (NYSE:)’s price target of $100, a Street-high that was set last week, according to Investing.com.
The company is expected to report record quarterly sales for the period ended in December, totaling $231 million with a loss per share of 42 cents, according to data compiled by Investing.com.
DraftKings peer Penn National Gaming (NASDAQ:) dropped about 2%.
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