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

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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.