DraftKings price target lowered to $50 from $55 at Bernstein

Bernstein analyst Ian Moore lowered the firm’s price target on DraftKings to $50 from $55 and keeps an Outperform rating on the shares. As if Kalshi & Polymarket were not enough, DraftKings (DKNG) and Flutter Entertainment (FLUT) have been under pressure in recent weeks as state data has begun to paint a challenging picture for early Q4 win margin. While Bernstein does worry that sustained pressures could rekindle a debate around the accuracy of DraftKings’ and FanDuel’s estimates for structural hold, the firm does not have these concerns and expects some relief in the remainder of Q4. Against the current backdrop. However, where many investors have bought into the narrative that long-term OSB bulls like Bernstein are counting pennies in front of Kalshi’s bulldozer, the firm suspects the market may remain unforgiving.