DraftKings price target lowered to $48 from $55 at MoffettNathanson

MoffettNathanson lowered the firm’s price target on DraftKings (DKNG) to $48 from $55 on lower multiple, while keeping a Buy rating on the shares. While legal OSB players were announcing initial frameworks to approach the prediction market over the past couple of months, the firm notes that it had yet to see any formal decisions. “Well, we finally have clarity that DraftKings is ready to shift to the offensive,” MoffettNathanson says, competing with the likes of Kalshi in the growing sport event contracts business in non-legalized OSB states in the coming months, possibly before year-end. DraftKings believes the growth in predictions will “motivate more states to legalize online sports betting and iGaming with reasonable regulation and taxation.”