Bernstein Lowers Price Target for DraftKings (DKNG)
Key Takeaways
Bernstein analyst Ian Moore has reiterated an Outperform rating on DraftKings (DKNG) but lowered the price target from $55.00 to $50.00, marking a 9.09% reduction in expected stock value. Despite this adjustment, the Outperform rating reflects ongoing confidence in DraftKings' market prospects.
Analyst Sentiment and Market Position
DraftKings continues to receive positive evaluations from various analysts, showing optimism alongside some adjustments to market forecasts. Investors are advised to stay updated on these changes for their potential impact on stock performance.
Company Background and Operations
Founded in 2012 as a pioneer in daily fantasy sports, DraftKings expanded into online sports and casino gambling after a 2018 Supreme Court ruling allowed states to legalize online sports wagering. The company typically holds the second or third largest revenue share in states where it operates.
- DraftKings is active in 28 states with online or retail sports betting.
- i-Gaming is available in 5 states.
- Both products serve about 40% of Canada's population.
Revenue Breakdown in 2024
- Sports revenue: 61% of total sales
- i-Gaming revenue: 32%
- Fantasy and lottery revenue: 7%
Additional Business Ventures
The company also operates a commission-based marketplace for non-fungible tokens (NFTs) and develops and licenses various online gaming products.
“This change represents a decrease of 9.09% in the anticipated stock value. Despite the adjusted price target, the Outperform rating suggests continued confidence in DraftKings' market potential.”
Author's summary: DraftKings maintains strong market confidence despite a lowered price target, driven by its diversified presence in sports betting, i-gaming, and innovative gaming ventures.