StoneX analyst Michael Hickey reiterated a Buy rating and $30.00 price target on DraftKings Inc. (NASDAQ: DKNG).

The analyst commented, "We reduce our 2026 AEBITDA estimate to $575M from $675M. The reduction reflects our expectation that DraftKings’ Predictions AEBITDA investment will exceed $400M, above its original $200M-$300M outlook. Importantly, we see no evidence of a material 3Q sports-outcome or hold issue. DraftKings reported 15% YoY sportsbook handle growth through the first two NFL weeks, parlay mix increased 300 basis points and no unfavorable outcomes were identified as a quarterly headwind. We view the estimate reduction as investment-driven, not evidence of weakness in sportsbook or iGaming. The core business continues to perform well, while DraftKings’ early Predictions performance has materially exceeded our expectations. We believe 2026 should represent peak Predictions investment, positioning the business to become a smaller earnings drag and a larger growth contributor in 2027."

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 $21.25 yesterday.