BMO Capital analyst Brian Pitz lowered the firm’s price target on DraftKings (DKNG) to $50 from $63 and keeps an Outperform rating on the shares following “softer-than-anticipated” Q3 results. The firm said unfavorable sports outcomes were the primary driver, representing a nearly $300M headwind to revenue in September and October. Handle growth accelerated 400 basis points sequentially to 10% growth, supporting BMO Capital’s view that prediction markets are not cannibalizing legal online sports betting markets, the firm told investors in a research note.
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