What happened Shares of Golden Nugget Online Gaming (NASDAQ: GNOG) were running 11% higher in afternoon trading Tuesday after an analyst initiated coverage of the online casino operator with a buy rating. So what Jefferies (NYSE: JEF) analyst David Katz said Golden Nugget has proved itself in New Jersey, the foremost state for online gambling in both casino games and sports betting. He says its performance last year indicates it can establish a low double-digit share of the market and there is "100+% potential upside." Image source: Getty Images. Golden Nugget was by far the largest player in New Jersey, generating $319 million in internet gambling gross revenue in 2020, up 80% from the year before. MGM Resorts International's (NYSE: MGM) Borgata was second with $209 million, followed closely by Resorts Digital at $208 million. Now what With expansion to other states underway and the growth of sports betting in New Jersey and elsewhere, Golden Nugget has plenty of opportunity to see its market share rise. It generated $1.5 million in gross revenue on sports wagering last year, well behind industry leaders DraftKings (NASDAQ: DKNG) and FanDuel. Katz set a $28 price target on Golden Nugget stock, more than twice the $13.79 that the shares closed at yesterday. Golden Nugget Online Gaming went public at the end of 2020. It didn't take the traditional IPO route, but instead went through a reverse merger with a special purpose acquisition company, or SPAC. 10 stocks we like better than Golden Nugget Online GamingWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Golden Nugget Online Gaming wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc.. The Motley Fool has a disclosure policy.Source