Analyst Jason Tilchen from Canaccord Genuity maintained a Buy rating on DraftKings and keeping the price target at $60.00.
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Jason Tilchen has given his Buy rating due to a combination of factors surrounding DraftKings’ strategic acquisition of Railbird Technologies. This move is seen as a significant step for DraftKings as it aims to enter the prediction markets space, leveraging Railbird’s CFTC-approved platform to offer regulated event contracts. The acquisition is expected to expedite DraftKings’ timeline for launching a prediction markets product, benefiting from Railbird’s technology and expertise.
Furthermore, while traditional sports betting remains a stronghold, the expansion into prediction markets could attract a new demographic and generate media interest, despite the current regulatory challenges in some states. The valuation supporting the Buy rating includes a price target of $60, based on a forward-looking EBITDA estimate and a DCF valuation, reflecting confidence in DraftKings’ strategic direction and growth potential.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 137 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DKNG in relation to earlier this year.