DraftKings price target lowered to $50 from $52 at Macquarie

Macquarie lowered the firm’s price target on DraftKings to $50 from $52 and keeps an Outperform rating on the shares following the company’s Q2 earnings call, much of which was focused on discussing the company’s plans to introduce a gaming surcharge tax on customers’ winning bets in states that are highly taxed. The firm believes this is “an interesting idea that could be very accretive” to margins and EBITDA in FY25 and beyond if implemented and thinks a surcharge tax “could provide an array of benefits” for DraftKings, even in a scenario in which the company loses up to 30% market share, the analyst tells investors.