Bernstein Lowers Price Target for DraftKings (DKNG) Amid Positive Outlook
Key Takeaways
Bernstein analyst Ian Moore reaffirmed an Outperform rating on DraftKings (DKNG) but reduced the price target from $55.00 to $50.00, marking a 9.09% decrease in expected stock value. Despite this adjustment, the rating reflects ongoing confidence in DraftKings' market prospects.
Analyst Sentiment and Market Position
DraftKings continues to receive favorable reviews from analysts, balancing optimism with updated market expectations. Investors are advised to watch these changes closely, as they may influence the stock’s future performance.
Company Overview and Market Reach
Founded in 2012 as a pioneer in daily fantasy sports, DraftKings expanded into online sports and casino gambling after a 2018 Supreme Court decision that enabled state legalization of online sports betting.
- DraftKings holds the second or third largest revenue share in states where it operates.
- It offers betting services either online or via retail in 28 states and provides i-gaming in 5 states.
- Both products cover approximately 40% of Canada’s population.
Revenue Breakdown for 2024
- Sports betting: 61% of total sales
- I-gaming: 32%
- Fantasy and lottery: 7%
Additional Business Activities
Beyond betting, DraftKings operates a commission-based marketplace for non-fungible tokens (NFTs) and is engaged in the development and licensing of online gaming products.
Ian Moore stated, “The Outperform rating suggests continued confidence in DraftKings' market potential despite the adjusted price target.”
Author’s summary: Bernstein lowers DraftKings’ price target while maintaining a positive outlook, highlighting the company’s strong market position and diverse revenue streams.