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The DraftKings website home screen is displayed on a laptop.

Gabby Jones / Bloomberg

DraftKings

The results are expected to be released around February 26th. An analyst at Benchmark has raised the bar.

Analyst Mike Hickey increased his target price for

DraftKings

Share (ticker: DKNG) to 66 USD from 60 USD in a note on Sunday. He has a buy rating for the stock and expects the company to deliver strong performance in the fourth quarter of fiscal while increasing expectations for the year ahead.

“The online sports betting and online casino markets have shown remarkable growth,” Hickey wrote.

DraftKings stock is up around 212% since it went public in April through a merger with a special purpose vehicle. Though sport stalled at the start of the Covid-19 pandemic, the company has expanded its offering in states where online sports betting and mobile casino games have been legalized. After the sport returned in the summer, more developed markets like New Jersey saw record monthly online sports betting in the fall.

Analysts have also pointed to budget gaps as a spark that could lead more states to allow online sports betting to fill budget gaps in Covid-19.

“The regulatory momentum has been extremely encouraging and we believe that ongoing government legalization will lead to increased revenue,” Hickey writes. “DKNG should expand market leadership through investments in brand awareness and player acquisition.”

For the fourth quarter of fiscal year, Hickey expects revenue of $ 222 million, compared to consensus estimates of around $ 232 million. For fiscal year 2021, he predicts sales of $ 843 million.

DraftKings stock rose 1% on Monday but fell another 6.3% to $ 58.15 after the close of trading.