Morgan Stanley goes 'all in on best-in-breed sports betting' stock

DraftKings CEO and Co-Founder Jason Robins speaks during the unveiling of DraftKings headquarters March 26, 2019 in Boston, Massachusetts.
Darren McCollester | Getty Images

(This story is for CNBC Pro subscribers only.)

Morgan Stanley is bullish on sports betting company DraftKings, a pure play on legal gambling with strong financial growth metrics. 

The Wall Street firm has an overweight rating and $23 per share price target on DraftKings as it goes "all in on best-in-breed sports betting." This implies a near 20% rally from the digital sports entertainment and gaming company from Wednesday's closing price of $19.40 per share. 

"DraftKings is an almost pure play on the early stage legal US sports betting and iGaming growth opportunity, with a customer acquisition advantage," Morgan Stanley equity analyst Thomas Allen told clients on Wednesday. 

More In Pro News and Analysis

CNBC ProSantoli: Bulls and bears agree on a potential bounce for stocks here. One group could be a way to play it
CNBC ProThe S&P 500 barely avoided a bear market. Here's how stocks have fared after previous 'near misses'
CNBC ProMaverick Capital increases bets on Carvana, Uber and Snowflake in the first quarter