Loop Capital's GGR Tracker Implies DraftKings Inc. (DKNG) Will Report a Double Digit Top Line Beat

Loop Capital analyst Daniel Adam reiterated a Buy rating and $105.00 price target on DraftKings Inc. (NASDAQ: DKNG) after data from the analyst's monthly GGR tracker implies another top line beat. Data implies that the company will report an ~11% sequential decline in Q2 average daily revenues, significantly better than the ~23% sequential top line decline that the sell-side is modeling for the quarter.

The analyst stated "In our view, DKNG’s QTD upside vs. consensus in Q2 is especially impressive given: 1) the slower pace of sign-ups in IL this quarter after the state stopped allowing mobile registrations in April; and 2) DKNG’s arguably conservative expectation for a moderation in hold % vs. Q1 (note that Sell-rated PENN aggressively suggested that its high hold % could be sustained). Bottom line, based on the latest monthly GGR and AGR data releases, we continue to expect another “beat and raise” quarter from our top pick, Buy-rated DKNG. Implied upside to our Street-high $105 PT is >130%."

For an analyst ratings summary and ratings history on DraftKings Inc. click here. For more ratings news on DraftKings Inc. click here.

Shares of DraftKings Inc. closed at $44.66 yesterday.

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