DraftKings price target raised to $31 from $27 at Deutsche Bank

Deutsche Bank raised the firm’s price target on DraftKings to $31 from $27 and keeps a Hold rating on the shares. Given the “strong” Q3 report and “solid” guidance, the firm expects “shares to act well” into the analyst day upcoming on November 14, the analyst tells investors in a post-earnings note. However, following the analyst day, the firm thinks the direction of shares “will be entirely predicated” on DraftKings’ ability to execute. With the business close to scale, the company’s ability to effectively double EBITDA in 2025 and continue to grow healthily in 2026 “likely boils down to organic industry growth” and the ability of DraftKings to maintain, or perhaps grow, market share, the analyst argues.