DraftKings price target lowered to $38 from $39 at BTIG

BTIG lowered the firm’s price target on DraftKings to $38 from $39 and keeps a Buy rating on the shares ahead of its Q3 results and initial FY24 guidance. The analyst notes that there is some potential for choppiness in shares over the next few months due to expectations and upticks in competitive noise, but the multi-year growth and margin improvement story for DraftKings remains compelling. Thgere is potential for DraftKings to speak to narrower EBITDA losses for FY23, while the mid-month Investor Day could shine a light on the impacts to free cash flow and the balance sheet from forthcoming margin improvement, the firm tells investors in a research note.