Bernstein Lowers Price Target for DraftKings (DKNG)
Bernstein analyst Ian Moore maintains an Outperform rating on DraftKings (DKNG) but lowers the price target from $55.00 to $50.00, a 9.09% decrease. Despite this adjustment, the rating signals ongoing confidence in DraftKings' market position.
Analyst Perspective and Market Outlook
DraftKings continues to earn positive reviews from various analysts, reflecting both optimism and necessary market recalibrations. Investors should watch these updates closely as they could influence stock performance.
Company Overview and Market Presence
- Founded in 2012 as a pioneer in daily fantasy sports.
- Expanded into online sports and casino gambling after a 2018 Supreme Court ruling allowed state legalization of online sports wagering.
- Generally ranks second or third in revenue share within states where it operates.
- Active in 28 states with online or retail sports betting and offers i-gaming in 5 states.
- Both sports betting and i-gaming services are available to approximately 40% of Canada's population.
Revenue Breakdown in 2024
- Sports betting generated 61% of total sales.
- I-gaming contributed 32% of revenue.
- Fantasy sports and lottery accounted for 7%.
Additional Operations
DraftKings also runs a commission-based marketplace for non-fungible tokens (NFTs) and develops and licenses online gaming products.
Bernstein analyst Ian Moore said, "The Outperform rating suggests continued confidence in DraftKings' market potential."
Author's summary: Bernstein lowers DraftKings' price target amid market adjustments but retains confidence in its growth, reflecting its strong position in sports betting and i-gaming sectors.