In the preceding three months, 17 analysts have released ratings for DraftKings DKNG, presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 13 | 3 | 0 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 1 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 3 | 0 | 0 | 0 | 0 |
| 3M Ago | 8 | 2 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $44.76, a high estimate of $50.00, and a low estimate of $28.00. This current average has increased by 11.9% from the previous average price target of $40.00.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive DraftKings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Alistair Johnson | Exane BNP Paribas | Announces | Underperform | $28.00 | - |
| Jeffrey Stantial | Stifel | Raises | Buy | $45.00 | $40.00 |
| Brian Pitz | BMO Capital | Announces | Outperform | $43.00 | - |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| John Eade | Argus Research | Raises | Buy | $46.00 | $40.00 |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| Ryan Sigdahl | Craig-Hallum | Raises | Buy | $45.00 | $40.00 |
| Curry Baker | Guggenheim | Raises | Buy | $45.00 | $39.00 |
| Mike Hickey | Benchmark | Raises | Buy | $41.00 | $37.00 |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| Joseph Stauff | Susquehanna | Raises | Positive | $42.00 | $37.00 |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| Robin Farley | UBS | Raises | Buy | $44.00 | $39.00 |
| Barry Jonas | Truist Securities | Raises | Buy | $45.00 | $44.00 |
| Bernie McTernan | Needham | Raises | Buy | $50.00 | $44.00 |
| Joseph Stauff | Susquehanna | Lowers | Positive | $37.00 | $40.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to DraftKings. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of DraftKings compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for DraftKings's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of DraftKings's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on DraftKings analyst ratings.
Unveiling the Story Behind DraftKings
DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number two or three revenue share position across states in which it competes. DraftKings is now live with online sports betting in 21 states (44% of the U.S. population) and iGaming in five states (11% of U.S.), with both products available to around 40% of Canada's population. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.
Financial Milestones: DraftKings's Journey
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: DraftKings's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 57.38%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: DraftKings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -35.84%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): DraftKings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -31.11%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): DraftKings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -7.58%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.67, DraftKings adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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