Bernstein Lowers Price Target for DraftKings (DKNG)
Key Takeaways
Bernstein continues to rate DraftKings (DKNG) as Outperform but has lowered its price target from $55.00 to $50.00, marking a 9.09% decrease in expected stock value. Despite this adjustment, the Outperform rating indicates ongoing confidence in DraftKings' potential in the market.
DraftKings consistently receives positive reviews from various analysts, showing a balance of optimism and updated market expectations. Investors are advised to watch these developments as they could influence stock performance.
Company Background and Market Position
Founded in 2012 as a pioneer in daily fantasy sports, DraftKings expanded into online sports betting and casino gambling after a 2018 Supreme Court decision permitted states to legalize these activities. The company generally ranks second or third in revenue share in the states where it operates.
Currently, DraftKings offers online or retail sports betting in 28 states and i-gaming in 5 states, reaching roughly 40% of Canada's population with its products.
Revenue Breakdown for 2024
- Sports revenue: 61% of total sales
- I-gaming: 32%
- Fantasy and lottery: 7%
Additional Operations
Beyond its core gaming offerings, DraftKings operates a non-fungible token commission-based marketplace and develops and licenses online gaming products.
Bernstein analyst Ian Moore stated, "Despite the adjusted price target, the Outperform rating suggests continued confidence in DraftKings' market potential."
Summary: Bernstein lowers DraftKings' price target by about 9% but keeps a positive outlook, reflecting the company's strong position in sports betting and i-gaming markets.