CNBC Pro

Piper Sandler sees big gains for DraftKings, Penn National as sports betting market expands

Tennys Sandgren of the United States returns a ball during the singles match against Christopher Eubanks of the United States during the DraftKings All-American Team Cup on July 4, 2020 in Atlanta, Georgia.
Carmen Mandato | Getty Images

(This story is for CNBC Pro subscribers only).

DraftKings and Penn National Gaming are poised to take a substantial piece of the growing online betting market, according to investment firm Piper Sandler.

The firm initiated coverage of both stocks with an overweight rating on Friday, saying the sector has "numerous tailwinds" to help the stocks outperform the broader market.

More In Street Calls

CNBC ProBank of America upgrades BJ's to buy, says retailer will outperform in an inflationary environment
CNBC ProSell United Rentals ahead of construction slump, Bernstein says
CNBC ProHere are Thursday's biggest analyst calls: Sunrun, Zoom, Mattel, Starbucks, Bed Bath & Beyond & more