DraftKings price target raised to $36 from $33 at Stifel

Stifel raised the firm’s price target on DraftKings to $36 from $33 and keeps a Hold rating on the shares, stating after earnings that execution on product and the cadence of margin expansion “far exceeded our expectations” yet again. With the firm’s “Hold-thesis proven entirely wrong,” and the stock up 196% year-to-date, the analyst says the “question becomes where do we go from here?” While the firm adjusted its model to align to FY23/24 guidance, the analyst reiterates a Hold rating and continues to wait for a pullback to get more constructive, adding it still believes “it may be early to write off risk of market share deconsolidation,” more so for iCasino, and that the valuation “appears increasingly stretched.”