DraftKings price target lowered to $46 from $50 at Stifel

Stifel analyst Jeffrey Stantial lowered the firm’s price target on DraftKings (DKNG) to $46 from $50 and keeps a Buy rating on the shares. DraftKings having outperformed on Friday despite “a messy print” and mostly high level commentary on the conference call seems to suggest sentiment and valuation “may be finding a floor” after a subpar Kalshi product launch and over-stated volume metrics wiped out greater than $16B of equity value between DraftKings and peer Flutter Entertainment (FLUT), the analyst tells investors in a post-earnings note. The firm adds that estimates “need to move lower again” and argues that prediction markets and hold overhangs are “likely not going away any time soon.”