DraftKings price target lowered to $41 from $50 at Bernstein

Bernstein lowered the firm’s price target on DraftKings (DKNG) to $41 from $50 and keeps an Outperform rating on the shares. The firm notes that between Thursday’s release and Friday’s call, DraftKings’ management provided much needed clarity on the timing of the DK Predictions launch as well as target states and rationale behind ranges for marketing spend. Bernstein now sees a defensible path to about $1B in 2026 EBITDA and believes this reset can fundamentally shift the narrative toward Predictions’ incremental growth potential underpinned by increasing traditional gaming profitability.