DraftKings (DKNG) may have trimmed its outlook, but Wall Street still likes the odds. Following last week’s Q1 earnings, a wave of analyst updates shows that sentiment remains bullish, even as a few price targets came down a notch. The DKNG stock performance since Q1 earnings solidifies the general sentiment, with an over 9% rise.
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Analysts Have Their Say
TD Cowen’s Lance Vitanza was the sole analyst holding on to a Hold rating, and he lowered his price target from $55 to $53. Still, that implies about a 40% upside from current levels. Most others were more upbeat. Guggenheim’s Curry Baker reiterated a Buy, trimming his target from $61 to $60, while Susquehanna’s Joseph Stauff moved in the other direction, raising his price target from $42 to $52.
So, what’s keeping $DKNG in analysts’ good graces despite the guidance cut?
Mizuho’s Ben Chaiken summed it up best, calling it a ‘better than feared’ quarter, especially on betting handle metrics. He reduced his price target slightly to $58 but maintained his Outperform rating, pointing to improving fundamentals even as seasonal sports betting activity eases.
Stauff believes the offseason may actually help reduce volatility tied to unpredictable outcomes. He sees a “favorable setup” heading into the summer with U.S. state budget concerns in markets like Ohio and New Jersey proving less severe than expected. The broader analyst community seems to agree; Out of 30 analysts, 26 rate DraftKings a Buy. The average price target hovers around $56, implying a 46% upside from today’s $38 share price.
Even new bulls are showing up. CBRE’s John DeCree upgraded $DKNG to Buy with a $54 target, citing improved positioning after the earnings reset. And then there’s the long-term view: DraftKings remains a national leader in a fast-growing, legalized sports betting market that’s still early in its monetization story.
Is DraftKings a Good Stock to Buy?
As the article mentions, DraftKings has a Strong Buy rating and an average DKNG stock price target of $55.72. This implies a 46.62% upside.
