DraftKings price target raised to $27 from $21 at Craig-Hallum

Craig-Hallum raised the firm’s price target on DraftKings to $27 from $21 and reiterates a Buy rating on the shares. The company reported a "strong beat/raise" with the biggest surprise being the cost efficiencies evident in Q4 results and revised 2023 guidance, the analyst tells investors in a research note. The analyst sees an "important pivot" in management’s mindset from not just growth but also expenses. In addition, industry conditions improved in the second half of 2022 and DraftKings is taking share, contends the firm. Hallum thinks investor sentiment is "starting to turn" and continues to believe DraftKings will be one of the few long-term winners in the sector.