DraftKings and Penn National can both be winners in online gambling, Needham says

Jay Snowden, Penn National Gaming on CNBC's Mad Money, January 29, 2020.
Scott Mlyn | CNBC

The sports betting and online gambling market will be big enough for DraftKings and Penn National Gaming to succeed, according to investment firm Needham.

Analyst Bernie McTernan initiated coverage of both stocks on Monday night with buy ratings, saying the U.S. market will end up being stronger on a per-capita basis than the United Kingdom and Australia, a common comparison point for those who are more skeptical of the space.

More In Street Calls

CNBC ProBank of America reveals 5 top stocks based on companies' strong charts
CNBC ProInvestment banks pick their top battery and EV stocks — and there's 1 Goldman loves
CNBC ProHere are Wednesday's biggest analyst calls: Tesla, Best Buy, Apple, Amazon, Air Products & more