DraftKings Inc. (DKNG) Consensus May Be Too High - Jefferies

Jefferies analyst David Katz reiterated a Buy rating and $55.00 price target on DraftKings Inc. (NASDAQ: DKNG) after the analyst updated the model to reflect increased marketing spend, which reflects the initial stages of an increasingly competitive landscape.

The analyst stated "Based on the recent events and efforts by the company, we conclude that the Street's near-term profitability estimates are likely too high, particularly for the remainder of 2020. This is based on what we expect to be considerable marketing expenditures for new market entry, most notably IL, MI and CO. Using NJ as a guide, the cost of market entry on a population-adjusted basis, the cost of building a following in these new markets could be considerably higher than our prior estimates".

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 $36.98 yesterday.

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