Bernstein Lowers Price Target for DraftKings
Key Takeaways
Bernstein analyst Ian Moore reiterated an Outperform rating for DraftKings (DKNG) but reduced the price target from 55 to 50 dollars, marking a decline of 9.09 percent in projected value. Despite this adjustment, the Outperform rating indicates continuing confidence in the company’s growth prospects.
Market Analysis
DraftKings continues to receive mostly positive feedback from analysts, combining market optimism with cautious revisions of financial projections. Investors are advised to stay alert to these updates as they could influence stock performance.
Company Background
DraftKings was founded in 2012 as an innovator in daily fantasy sports. After the 2018 Supreme Court decision that allowed states to legalize online sports betting, the company quickly expanded into both sports and casino gambling.
Current Operations
- Active in online or retail sports betting across 28 U.S. states.
- Operates i-gaming services in 5 states.
- Serves approximately 40 percent of Canada's population with its two main products.
Revenue Breakdown (2024)
- Sports betting: 61 percent
- I-gaming: 32 percent
- Fantasy and lottery: 7 percent
DraftKings also runs a commission-based marketplace for non-fungible tokens and develops and licenses proprietary gaming software.
Author’s summary: Bernstein maintains a confident stance on DraftKings despite lowering its price target, citing long-term growth potential sustained by broad market presence and diversified gaming operations.