Bernstein Lowers Price Target for DraftKings (DKNG)
Key Takeaways
Bernstein analyst Ian Moore reaffirmed an Outperform rating for DraftKings (DKNG) but lowered the price target from $55.00 to $50.00, representing a 9.09% decrease in expected stock value. Despite this adjustment, Bernstein remains confident in DraftKings’ market potential.
Analyst Sentiment
DraftKings continues to receive positive evaluations from multiple analysts, showing a blend of optimism and adjustments in market forecasts. Investors should stay alert to these developments as they may impact the company’s stock performance.
Company Background and Market Position
Founded in 2012 as a daily fantasy sports pioneer, DraftKings expanded after a 2018 Supreme Court decision that permitted states to legalize online sports betting. The company now operates in the online sports and casino gambling markets, frequently holding the second or third largest revenue share in states where it competes.
- DraftKings is active with online or retail sports betting in 28 states.
- It offers i-gaming in 5 states.
- Its products reach 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 Operations
The company also runs a commission-based marketplace for non-fungible tokens (NFTs) and develops and licenses online gaming products.
"Bernstein analyst Ian Moore reiterated an Outperform rating on DraftKings, while adjusting the price target from $55.00 to $50.00."
Author’s summary: Bernstein’s cautious price target cut for DraftKings still signals strong confidence in the company’s growth amid evolving market dynamics and diversified gaming offerings.