17 analysts have shared their evaluations of DraftKings DKNG during the recent three months, expressing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 10 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 3 | 7 | 1 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 1 | 0 |
Analysts have set 12-month price targets for DraftKings, revealing an average target of $49.59, a high estimate of $60.00, and a low estimate of $28.00. Observing a 13.9% increase, the current average has risen from the previous average price target of $43.54.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of DraftKings among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jordan Bender | JMP Securities | Maintains | Market Outperform | $52.00 | - |
| Robin Farley | UBS | Raises | Buy | $56.00 | $44.00 |
| Stephen Grambling | Morgan Stanley | Raises | Overweight | $49.00 | $40.00 |
| Brandt Montour | Barclays | Raises | Overweight | $50.00 | $41.00 |
| Daniel Politzer | Wells Fargo | Raises | Overweight | $53.00 | $39.00 |
| Barry Jonas | Truist Securities | Raises | Buy | $55.00 | $45.00 |
| Jed Kelly | Oppenheimer | Raises | Outperform | $60.00 | $55.00 |
| Brandt Montour | Barclays | Raises | Equal-Weight | $41.00 | $36.00 |
| Bernie McTernan | Needham | Raises | Buy | $54.00 | $50.00 |
| Brian Pitz | BMO Capital | Raises | Outperform | $51.00 | $43.00 |
| Joseph Stauff | Susquehanna | Raises | Positive | $51.00 | $49.00 |
| Bernie McTernan | Needham | Maintains | Buy | $50.00 | - |
| Jed Kelly | Oppenheimer | Raises | Outperform | $55.00 | $44.00 |
| Matt Farrell | Piper Sandler | Raises | Overweight | $50.00 | $40.00 |
| 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 | - |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to DraftKings. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of DraftKings compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of DraftKings's stock. This analysis reveals shifts in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of DraftKings's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on DraftKings analyst ratings.
All You Need to Know About 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 24 states (46% of the U.S. population) and iGaming in seven 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.
Key Indicators: DraftKings's Financial Health
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Positive Revenue Trend: Examining DraftKings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 43.94% as of 31 December, 2023, showcasing a substantial increase in 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 -3.63%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): DraftKings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -5.44%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): DraftKings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.14%, the company may face hurdles in achieving optimal financial returns.
Debt Management: DraftKings's debt-to-equity ratio is below the industry average at 1.6, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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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