DraftKings Inc. (DKNG) PT Raised to $50 at BMO Capital, Top Pick

BMO Capital analyst Brian J. Pitz raised the price target on DraftKings Inc. (NASDAQ: DKNG) to $50.00 (from $42.00) while maintaining a Outperform rating.

The analyst comments "Investor Day suggests DKNG's TAM will grow at a 15% 5-year CAGR (at $67.5B midpoint) as Adj EBITDA margins should reach 30%+ over the long term. DKNG announced plans to integrate its products (Sportsbook, iGaming, Predictions, etc.) into one 'Super App', which should help accelerate cross-sell and lower CAC. Prediction markets could be a $10B Gross Revenue opportunity over time and come with 60%-80% Gross Margins vs ~50% Gross Margins in Sportsbook. Reiterate Outperform and Top Pick; increase Target Price to $50, with DKNG shares attractive at 10x 2027E Adj EBITDA."

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