Citi analyst Steven Sheeckutz has maintained their bullish stance on DKNG stock, giving a Buy rating today.
Steven Sheeckutz has given his Buy rating due to a combination of factors related to DraftKings’ recent performance and future outlook. Despite reporting slightly lower than expected revenue and adjusted EBITDA for the fourth quarter of 2024, the company demonstrated resilience by exceeding expectations in January 2025, indicating a strong start to the year. This positive momentum, paired with an increase in the lower end of its 2025 revenue guidance, suggests potential for share price growth.
Sheeckutz also noted the continued growth in monthly unique payers (MUPs), which increased by 36% year-over-year, driven by effective player acquisition and retention strategies. Although the average revenue per MUP (ARPMUP) declined, this was attributed to the impact of Jackpocket customers and a lower hold rate. Excluding these factors, the decline in ARPMUP was more modest. Overall, the combination of robust user growth and a promising start to 2025 underpins Sheeckutz’s optimistic outlook on DraftKings’ stock.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $50.00 price target.
Based on the recent corporate insider activity of 144 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.