Bernstein Lowers Price Target for DraftKings (DKNG)
Key Takeaways
Bernstein analyst Ian Moore reaffirmed an Outperform rating on DraftKings (DKNG) but lowered the price target from $55.00 to $50.00, reflecting a 9.09% reduction in expected stock value. Despite the revised target, the positive rating signals confidence in DraftKings' market opportunities.
Analyst and Market Perspective
DraftKings continues to receive encouraging assessments from analysts, balancing optimism with adjustments in market forecasts. Investors are advised to track these updates as they may influence stock performance.
Company Overview and Operations
Founded in 2012, DraftKings began as a pioneer in daily fantasy sports. After the 2018 Supreme Court decision that legalized online sports betting in states, the company expanded into online sports and casino gambling. It now holds a strong revenue position, ranking second or third in states where it competes.
- Sports betting is active online or in retail in 28 states.
- i-Gaming is available in 5 states.
- Both products reach approximately 40% of Canada’s population.
Revenue Breakdown for 2024
- Sports revenue: 61% of total sales
- i-Gaming revenue: 32%
- Fantasy and lottery: 7%
Additional Business Activities
Besides gaming operations, DraftKings runs a commission-based NFT marketplace and develops and licenses online gaming products.
“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.”
Summary: Bernstein’s price target reduction reflects cautious optimism for DraftKings, highlighting its solid market position and diverse revenue sources in a growing online gaming industry.