Jefferies lowered the firm’s price target on DraftKings (DKNG) to $51 from $54 and keeps a Buy rating on the shares, while removing the stock from the firm’s “Franchise Pick” list. The firm updated the company’s model to reflect the “unfavorable” trends in Q3 of low September hold and elevated promotional spend. These equate to a $150M headwind to DraftKings’ adjusted EBITDA in the quarter, the analyst tells investors. Jefferies believes that while the pushing out of earnings is challenging for shares in the near term, the company’s longer term earnings power remains.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DKNG:
- DraftKings: Oversold Opportunity Amid Regulatory Uncertainties and Market Fluctuations
- DraftKings Faces Turbulent Week Amid Market Challenges
- Buy/Sell: Wall Street’s top 10 stock calls this week
- Nevada denies injunction request from Crypto.com, says Texas Capital
- Spruce Point short DraftKings, sees 35%-60% potential long-term downside