DraftKings Inc. (DKNG) PT Lowered to $42 at Guggenheim

Guggenheim analyst Curry Baker lowered the price target on DraftKings Inc. (NASDAQ: DKNG) to $42.00 (from $45.00) while maintaining a Buy rating.

The analyst commented: "We are updating our model for 4Q25 and an initially more conservative 2026 outlook. Our 4Q revenue and EBITDA outlook was raised to reflect in-line to better hold and a rational promotional environment. We estimate 4Q revenue of $2.043bn (up from $1.93bn) and EBITDA of $300mm (up from $227mm), both slightly above the high-end of the guidance range. We note that growth on a y/y basis is heavily skewed by negative 4Q24 NFL outcomes. We lowered our 2026 EBITDA outlook to $910mm (down from $998mm) as we expect prediction market investments and higher marketing spending (NBCU, ESPN). In our view, given recent guidance challenges, it would be prudent for DKNG to start 2026 in a very reasonable zone and hopefully exceed expectations throughout the year. Underlying consumer demand for DraftKings products remains strong, and our app engagement data continues to show robust trends. We expect near-term investor focus/momentum to remain on week-to-week state level data and Super Bowl LX. DKNG has a $2bn buyback in place, and we do believe they have been/will be opportunistic. PT down to $42 from $45."

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