DraftKings extends gains after raising profit target at latest investor day

• DraftKings rose for a second day Wednesday after the company increased some of projections and long-term targets.
• The company expects the North American online sports betting and iGaming market to grow to $67 billion.
• Jefferies sees "further upside" in DraftKing's total addressable market projection.

Shares of DraftKings rose Wednesday, building on an improved financial outlook as the company anticipates growth in the North American market for online sports betting and gaming.

Share were up nearly 5% shortly after the opening bell, trading at $65.17.

The company's projections from its investor day held Tuesday included its view that the total addressable market for online sports betting and iGaming combined is $67 billion in North America as legalization trends "continue to be positive." A year ago, the outlook was set at $40 billion.

So far this year, the stock has bulked up by 33% and is well above where it traded a year ago at around $14.50.

DraftKings increased its outlook for long-term adjusted EBITDA to $1.7 billion from $1.2 billion a year earlier.

The company also said its latest estimate of the US online sports betting market is at least $22 billion at 100% legalization and for iGaming, the US market is at least $40 billion at 100% legalization.

"We think there could be further upside to that [total addressable market] as several states have seen higher run-rated revenue per capita than [New Jersey]," said Jefferies in a note Wednesday.