In a note Wednesday, Needham & Company raised its price target for DraftKings (NASDAQ:) to $58 from $54 per share, adding the stock to its Conviction list.

The firm said they now have greater confidence in their estimates for Buy-rated DKNG, as well as the upside in the Bull case after they switched their modeling methodology.

“We see a credible path back for the stock to the low $70s, a prior peak level last seen three years ago, driven by better OSB hold and OSB legislation in TX and CA,” wrote the firm.

In the firm’s base case, they think the stock is “compelling relative to other consumer tech peers” that they cover.

“Over the past year, we think DKNG has shown that they should be compared against large cap, emerging tech category leaders, and profitable growth companies in the US, which in our view includes UBER (Buy, $90 PT), DASH (Buy, $137), RBLX (Buy, $55), ABNB (Buy, $160), and Z (Hold),” said Needham.

They added: “On top of the strong base case proposition, we think DKNG offers the best risk-reward for estimates.”