A Glimpse Into The Expert Outlook On DraftKings Through 25 Analysts

In the last three months, 25 analysts have published ratings on DraftKings DKNG, offering a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $56.88, along with a high estimate of $65.00 and a low estimate of $50.00. Marking an increase of 3.34%, the current average surpasses the previous average price target of $55.04.

Interpreting Analyst Ratings: A Closer Look

The standing of DraftKings among financial experts becomes clear with a thorough analysis 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 | |--------------------|------------------------|---------------|-----------------|--------------------|--------------------| |Lance Vitanza |TD Securities |Lowers |Buy | $55.00|$60.00 | |Barry Jonas |Truist Securities |Lowers |Buy | $50.00|$60.00 | |Brandt Montour |Barclays |Lowers |Overweight | $50.00|$60.00 | |Jeffrey Stantial |Stifel |Lowers |Buy | $53.00|$57.00 | |Clark Lampen |BTIG |Lowers |Buy | $52.00|$64.00 | |Curry Baker |Guggenheim |Lowers |Buy | $61.00|$62.00 | |Bernie McTernan |Needham |Maintains |Buy | $65.00|$65.00 | |Jordan Bender |Citizens Capital Markets|Lowers |Market Outperform| $57.00|$60.00 | |Jordan Bender |Citizens Capital Markets|Maintains |Market Outperform| $60.00|$60.00 | |Mike Hickey |Benchmark |Raises |Buy | $51.00|$44.00 | |Stephen Grambling |Morgan Stanley |Raises |Overweight | $53.00|$49.00 | |Joseph Greff |JP Morgan |Raises |Overweight | $61.00|$53.00 | |Jordan Bender |JMP Securities |Raises |Market Outperform| $60.00|$50.00 | |Daniel Politzer |Wells Fargo |Raises |Overweight | $60.00|$53.00 | |Matt Farrell |Piper Sandler |Raises |Overweight | $60.00|$48.00 | |Brandt Montour |Barclays |Raises |Overweight | $60.00|$50.00 | |Barry Jonas |Truist Securities |Raises |Buy | $60.00|$50.00 | |Jeffrey Stantial |Stifel |Raises |Buy | $57.00|$48.00 | |Bernie McTernan |Needham |Raises |Buy | $65.00|$60.00 | |Mike Hickey |Benchmark |Raises |Buy | $51.00|$44.00 | |Jordan Bender |JMP Securities |Maintains |Market Outperform| $50.00|$50.00 | |Michael Graham |Canaccord Genuity |Raises |Buy | $60.00|$54.00 | |Bernie McTernan |Needham |Maintains |Buy | $60.00|$60.00 | |Bernie McTernan |Needham |Maintains |Buy | $60.00|$60.00 | |Lance Vitanza |TD Cowen |Lowers |Buy | $51.00|$55.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to DraftKings. This information offers 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: Delving into movements, analysts provide estimates for the future value of DraftKings's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of DraftKings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on DraftKings analyst ratings.

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 or retail sports betting in about 25 states and iGaming in five states, with both products available to around 40% of Canada's population. In 2024, sports revenue was 61% of total sales, i-gaming 32%, and fantasy and lottery 7%. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.

DraftKings's Economic Impact: An Analysis

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 displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 13.15%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: DraftKings's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -9.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): DraftKings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -12.92%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -3.15%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.32.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.