DraftKings Inc. (DKNG) PT Lowered to $50 at Stifel: Consensus Biased Upwards

Stifel analyst Jeffrey Stantial lowered the price target on DraftKings Inc. (NASDAQ: DKNG) to $50.00 (from $51.00) while maintaining a Buy rating.

The analyst commented, "We see a compelling FCF trajectory and upward bias to consensus estimates, reflecting continued execution on product, healthy same-state handle/GGR growth trends, incremental state legalization, structural hold-rate expansion, sustained rationality in market-wide marketing/ promos, and newfound fixed cost discipline and scale efficiencies. Concerns persist on disruption from new entrants, though scale, first mover, and swiftly achieved product co-leadership are powerful strategic advantages, and should help DraftKings weather the latest wave of competition investing in product and marketing (ESPN Bet; Fanatics; bet365; BetMGM). Valuation is a challenging exercise, though reasonable vs. historical European comps assuming our "stabilized" Adj. EBITDA forecasts prove accurate. Hence, we rate DraftKings Buy."

You May Also Be Interested In

• York Space Systems (YSS) PT Lowered to $15 at Jefferies
• CalPrivate Bank names Andra Frazier as chief credit officer
• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold