DraftKings should be up materially on FanDuel news, says Mizuho

In Mizuho sees a “must buy” opportunity in shares of DraftKings (DKNG) and Boyd Gaming (BYD) after Sky News reported that Boyd will sell a 5% position in FanDuel to Flutter Entertainment (FLUT) for $2B. This implies a $40B market cap for FanDuel and DraftKings, which has a similar market share in the U.S., has a current market cap of $21B, the analyst tells investors in a research note. Mizuho believes shares of DraftKings should trade up materially on Sky’s news. The firm has an Outperform rating on the name with a $58 price target. DraftKings in afternoon trading is up 4% to $44.48.