MoffettNathanson analysts upgraded DraftKings (NASDAQ:DKNG) from Neutral to Buy rating, boosting their price target from $31 to $37. As a result, shares jumped around 6% intra-day today.

Reflecting on DraftKings' Q4/22 letter, the analysts highlighted CEO Jason Robins' strategy to boost profitability by judiciously reducing expenses yet continuing to invest in the company's long-term strengths.

The analysts commended DraftKings for both cutting costs and surpassing revenue expectations. Additionally, they pointed out that DraftKings is closing its market share gap with U.S. sports betting leader FanDuel and surpassed BetMGM as the top U.S. iGaming entity in the recent quarter.