Bernstein Lowers Price Target for DraftKings (DKNG)
Key Takeaways
Bernstein maintains an Outperform rating for DraftKings (DKNG) but lowers the price target from $55.00 to $50.00, marking a 9.09% reduction in expected stock value. Despite this adjustment, the analyst remains confident in DraftKings' growth potential.
Analyst Opinions and Market Outlook
Bernstein analyst Ian Moore reiterated the Outperform rating but adjusted the price target downward. This reflects a cautious yet optimistic stance amid evolving market conditions. DraftKings continues to receive generally positive evaluations from various analysts, highlighting ongoing confidence mixed with recalibrated expectations. Investors should stay alert to these shifts as they may influence stock performance.
Company Background and Operations
Founded in 2012, DraftKings began as a pioneer in daily fantasy sports. After the 2018 Supreme Court decision enabling states to legalize online sports wagering, the company expanded into online sports and casino gambling. It typically ranks second or third in revenue share within the states where it operates.
- DraftKings offers online or retail sports betting in 28 states.
- Its i-gaming services are active in 5 states.
- Both products are available to about 40% of Canada’s population.
Revenue Breakdown for 2024
- Sports betting revenue: 61% of total sales
- I-gaming revenue: 32%
- Fantasy and lottery revenue: 7%
Additional Business Ventures
DraftKings also operates a commission-based marketplace for non-fungible tokens (NFTs) and develops and licenses online gaming products.
Bernstein analyst Ian Moore stated: "This change represents a decrease of 9.09% in the anticipated stock value. Despite the adjusted price target, the Outperform rating suggests continued confidence in DraftKings' market potential."
Author's summary: Bernstein slightly lowered DraftKings' price target but keeps an Outperform rating, reflecting cautious optimism amid a solid position in sports betting and gaming markets.