DraftKings price target raised to $28 from $20 at Needham

Needham raised the firm’s price target on DraftKings to $28 from $20 and keeps a Buy rating on the shares after its better than expected Q4 results and guidance raise. The management’s increased focus on profitability is providing the firm with greater conviction in its medium term estimates, the analyst tells investors in a research note. Needham adds that after the Q4 update, it is increasingly confident in DraftKings’ ability to get to profitability and scale margins overtime with particularly encouraging growth and profitability expansion in their oldest state vintages.