Stifel on DraftKings Inc. (DKNG): 'Market Is Mispricing Prediction Markets Net Risk/Opportunity'

Stifel analyst Jeffrey Stantial reiterated a Buy rating and $40.00 price target on DraftKings Inc. (NASDAQ: DKNG).

The analyst commented, "We hosted meetings with DraftKings' Senior Director of Investor Relations, Michael DeLalio, at Stifel's Annual Jackson Hole Consumer Summit. On the heels of DraftKings' Investor Day, meetings focused on DraftKings' prediction markets & recently announced 'super app' strategy with management acknowledging several near-term logistical hurdles, though emphasizing longterm right-to-win given pricing/trading capabilities, marketing scale, vertical product integration, & sports native culture. Softer Dec/Jan handle trends has also been a key overhang, which management firmly believes is more technical vs. structural (seemingly evidenced in early February state-reported results) with less discussed market share momentum partially offsetting market-wide deceleration. Commentary also suggested a better legislative setup through the remainder of 1H26 sessions. Bottom-line, we came away more positive that the market is mispricing prediction markets net risk/opportunity, and hence reiterate Buy into DraftKings' super app rollout & guided 2H26 UA/downloads ramp. No changes to our model or $40 target price."

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 $25.16 yesterday.

You May Also Be Interested In

• 22nd Century Group files prospectus for warrant share resale
• Circle board member resigns after nearly 13 years of service
• Liberty All-Star Equity Fund appoints Loomis Sayles as new manager