Bank of America upgraded DKNG to buy with a $27 target, citing reduced risk from prediction markets and viewing them as an opportunity.

Let's move on to DraftKings. This is not a deal. This is an upgrade. Perhaps a different story. This is a company whose stock has had a difficult year here. There were many concerns about Draft Kings.

But Bank of America has become optimistic about Draft Kings, which is helping to give a boost to this stock. And remember, Draft Kings was near its lowest level in 52 weeks.

They upgraded its rating from "neutral" to "buy". They have a price target of $27 from now. This comes after a decline of more than 40% over the past year. The bank sees more potential and opportunities here.

It's an opportunity to take risk for a reward. It is not a change in the target price, but rather a change in their outlook. They already had this target price before. But they have now moved from a neutral stance towards Draft Kings to a more optimistic viewpoint.

It's about the markets of expectations. They actually see it as an opportunity, not a threat. That was one of the obstacles that Draft Kings, i.e., the prediction markets, faced.

Such as "Cowsheet " and "Polymarket" which are spreading around the world, and compete with it in its market share.

Then there are also concerns about the regulatory climate surrounding it. We know that forecast markets allow clients to trade contracts on events, etc. The concern was: would the rise of those markets draw customers away from Draft Kings?

Bank of America says it sees less risk of that happening now, and that Draft Kings can actually benefit from the growth of its forecasting markets business, Nicole.

We have hosted the CEO of Draft Kings on two occasions. That was around the end of last year , and he was talking about the shift from just sports betting to having real prediction markets .

It looked absolutely fantastic. This time when we hosted him , he was more reserved about how great it was or whether it was even possible. So , we'll wait and see.

But it is certainly a vote of confidence from Bank of America, as you pointed out, with a target price of $27. The share price is currently $19.48.