Jefferies initiates DraftKings with a buy rating, sees 30% upside over the next year

The entrance from the elevators, designed to resemble a tunnel entering a stadium, is pictured at the new DraftKings office in Boston on March 25, 2019.
David L. Ryan | The Boston Globe via Getty Images

Investors should buy DraftKings stock as the political landscape becomes more favorable for the gambling industry and sports betting picks up post Covid-19, an analyst at Jefferies said Monday.

Analyst David Katz initiated coverage of the sport-betting company with a buy rating and a price target of $55 per share. That target implies a 12-month upside of 30% from Friday's close of $42 per share.