BTIG upgrades DraftKings to Buy, sees EBITDA beats continuing

BTIG analyst Clark Lampen upgraded DraftKings to Buy from Neutral with a $24 price target. A divergence in player adoption and marketing cost trends has driven upside versus EBITDA expectations for DraftKings throughout 2022, and this pattern will persist in 2023, the analyst tells investors in a research note. The firm believes the positive implications of the company’s Q4 report aren’t fully reflected in the stock. DraftKings’ fundamental levers for further beats are in place for 2023 and 2024, and the company is now in a stronger competitive position with a line of sight to positive cash flow and room to be more aggressive with growth investments, BTIG contends.