What happened

Shares of esports company Skillz (NYSE:SKLZ) are soaring yet again today after getting new positive coverage from analysts. The company went public in December so it's coverage from Wall Street is only just now starting to roll in. But as it rolls in, coverage has been positive, resulting in higher stock prices. That's true again today, with Skillz stock up 10% as of 1 p.m. EST.

So what

According to The Fly, Wedbush analyst Michael Pachter just initiated coverage on Skillz, starting it off with an outperform rating. Pachter also put a $34 per-share-price target on Skillz stock right off the bat. For perspective, Skillz stock closed yesterday at about $24.50 per share, implying about 39% upside.

A businessman rides a soaring rocket ship expelling cash exhaust over a multi-colored bar chart.

Image source: Getty Images.

Pachter's price target is one of the most bullish yet, but there's plenty of bullish rating to go around. According to The Fly, a Stifel analyst started coverage with a $28 per-share-price target yesterday. Furthermore, a Citigroup analyst initiated coverage last week with a $27 per-share-price target. Also among Skillz fans is widely followed ARK Invest, which invested $4 million in Skillz stock last week.

Now what

Even though Skillz went public via a special purpose acquisition company (SPAC), it's still in the initial public offering (IPO) category. Many investors chose to avoid these stocks early on because they can trade with greater volatility than the rest of the market. For now, that's a good thing for Skillz shareholders, considering it's already up 35% in 2021. But volatility can swing to the downside too. Shareholders should make sure they're convinced in the long-term prospects of the company and prepared to hang on for a likely wild ride over the next few months.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.