DraftKings 'Lost Some Games, But Won The Quarter': Analyst

by Erica Kollmann Benzinga Staff Writer

Zinger Key Points

DraftKings said that Q1 is off to a solid start with a strong January that “exceeded expectations.”
Canaccord Genuity maintains a Buy rating on DraftKings and raises the price target from $54 to $60.
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DraftKings, Inc. DKNG reported its fourth-quarter results on Thursday and analysts are weighing in with reactions to the print.

What To Know: The company missed revenue estimates in a tough quarter spanning "the most customer-friendly stretch of NFL sports outcomes in at least the last 40 years," Goldman Sachs analyst Ben Miller observed.

However, DraftKings beat earnings estimates and raised its fiscal 2025 guidance based on success in its live betting offering and the acquisition of Simplebet.

DraftKings said that Q1 is off to a solid start with a strong January that "exceeded expectations." BofA Securities analyst Shaun C. Kelley noted that the firm sees the Super Bowl driving revenue and estimates a $20 million to $25 million tailwind for DraftKings.

Truist Securities analyst Barry Jonas also sees 2025 starting strong and highlighted DraftKing's app reached the number one ranking in the app store for sports during the Super Bowl and number three across all apps. The company saw $436 million in handle which was a one-day record and saw favorable bet mix as well.

DraftKings "lost some games but won the quarter; 2025 off to hot start," Jonas wrote.

Multiple analysts updated coverage on DraftKings shares following its fourth-quarter earnings release:

Goldman Sachs analyst Ben Miller maintained a Buy rating and $57 price target on the stock.
Benchmark analyst Mike Hickey maintained DraftKings with a Buy and raised the price target from $44 to $51.
Canaccord Genuity analyst Michael Graham maintained a Buy rating and raised the price target from $54 to $60.
JMP Securities analyst Jordan Bender reiterated DraftKings with a Market Outperform and $50 price target.
Needham analyst Bernie McTernan reiterated a Buy rating and $60 price target on the stock.
Truist Securities analyst Barry Jonas maintained a Buy rating and $50 price target.
BofA Securities analyst Shaun C. Kelley maintained DraftKings with a Buy rating and $54 price target.