Oppenheimer lowered the firm’s price target on DraftKings (DKNG) to $50 from $55 and keeps an Outperform rating on the shares. The firm is also lowering 2026 EBITDA by 15% to $937M on incremental prediction market investments, following management reducing 2025 revenue/EBITDA by $300M/$350M to $6B/$500M on NFL outcomes and $50M-$70M for PMs. Oppenheimer sees ST investors finding the current risk/reward compelling on Street numbers resetting to more manageable position, with launching tangible PMs being the next step to reengage long-only investors. The firm believes analysts/investors clamoring to hedge risk are misguided, especially with holds trending 10.4% year-to-date.
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Read More on DKNG:
- DraftKings price target lowered to $45 from $55 at Guggenheim
- DraftKings price target lowered to $48 from $59 at Susquehanna
- DraftKings upgraded to Market Perform from Underperform at Northland
- DraftKings price target lowered to $46 from $50 at Stifel
- DraftKings price target lowered to $33 from $37 at Deutsche Bank