BofA Securities Reiterates Neutral Rating on DraftKings Inc. (DKNG)

BofA Securities analyst Shaun Kelley reiterated a Neutral rating and $27.00 price target on DraftKings Inc. (NASDAQ: DKNG)

The analyst comments "DraftKings reported Q2 revenue/EBITDA of $1.44B/$115M vs. BofA’s $1.38B/$120M, and the Street’s $1.51B/154M. Sports revenue of $891M was ahead of our $843M, and iGaming revenue of $462M was slightly ahead of our $455M. For the full year, DKNG reiterated their revenue guidance of $6.5-6.9B and EBITDA guide of $700-900M. Bottom line: Shares of DKNG traded down slightly in the aftermarket with mixed early feedback. Q2 results were largely in-line, but some investors hoped DKNG would more fully de-risk the FY guide given 1) continued investment in prediction markets (PMs) and 2) an intensifying competitive backdrop from FanDuel’s step up in promotions. Our sense is DKNG is executing well and gaining share in core sports betting, but we still think elevated customer acquisition could weigh on 2H EBITDA. Our 2026E EBITDA estimate of $625M is unchanged, and we reiterate our Neutral rating."

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 $22.17 yesterday.

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