Bernstein Lowers Price Target for DraftKings (DKNG) Amid Positive Outlook
Key Takeaways
Bernstein analyst Ian Moore reaffirmed an Outperform rating on DraftKings (DKNG), while lowering the price target from $55.00 to $50.00, a 9.09% reduction. Despite this adjustment, the rating reflects ongoing confidence in DraftKings' growth potential.
DraftKings continues to attract positive analyst reviews, balancing optimism with updated market expectations. Investors should watch these developments for their impact on stock performance.
Company Background and Market Position
Founded in 2012, DraftKings pioneered daily fantasy sports. After the 2018 Supreme Court decision enabling states to legalize online sports betting, DraftKings expanded into online sports and casino gambling, often ranking second or third in revenue share within competitive states.
Currently, DraftKings offers online or retail sports betting in 28 states and i-gaming in 5 states, serving roughly 40% of Canada's population through these products.
Revenue Breakdown for 2024
- Sports betting: 61% of total sales
- I-gaming: 32%
- Fantasy and lottery: 7%
Additional Operations
Beyond betting, DraftKings runs a marketplace for non-fungible tokens (NFTs) based on commissions and also develops and licenses online gaming products.
"Bernstein analyst Ian Moore reiterated an Outperform rating on DraftKings, adjusting the price target to reflect a 9.09% decrease in expected stock value."
Author’s summary: Bernstein confirms optimism on DraftKings but revises the price target down to $50, reflecting cautious confidence amid steady market expansion.