JPMorgan's Undervaluation Assessment Boosts DraftKings Stock

JPMorgan upgraded DraftKings stock from Neutral to Overweight, stating that the stock has not matched its on-field performance. The firm believes DraftKings has attractive growth prospects and an improving expense control environment. DraftKings' market share has increased, and its hold rates have improved as customers move to more profitable betting options. JPMorgan expects customer acquisition costs to decline as the company achieves national scale. Despite new competitors entering the market, JPMorgan believes DraftKings has a strong position and can compete effectively.