Citizens Equity Research analyst Jordan Bender projects DraftKings (DKNG) could significantly increase its valuation through prediction markets. The emerging sector may add between $10 billion and $14 billion to the company’s enterprise value. This potential growth represents an amount nearly equal to the firm's current size.
Bender argues the current market price fails to reflect this long-term opportunity. The forecast assumes DraftKings captures a 20% to 30% share of the prediction market by 2030. This market share could generate annual revenue between $907 million and $1.3 billion from event contracts.
Citizens Equity Research reiterated its Market Outperform rating on the stock. The firm set a price target of $34.