DraftKings (NASDAQ:DKNG) received an upgrade from BofA on Wednesday, shifting the rating from Neutral to Buy and raising the price target from $25 to $35 per share. Shares rose more than 5% intra-day today.

The firm believes that it is now time for DraftKings to establish its dominance in the industry, citing the company's increasing momentum in product revenue and the overall surpassing of expectations in online gaming.

Despite DraftKings' strong performance in 2023, the analysts believe that further gains in market share will result in positive revisions to the company's top line in both Q2/23 and the near term. Additionally, cost leverage is expected to lead to even more significant adjustments in adjusted EBITDA and margins than previously anticipated.