DraftKings revenue to rise to $3.1B in 2023, says Argus

Argus analyst John Staszak keeps a Buy rating and $22 price target on DraftKings while noting that the firm expects the company’s revenue to reach $3.1B in FY23, up from $323M in FY19, thanks to the legalization of online sports betting in additional states. The company last guided FY23 revenue at $2.95B at the midpoint of its range while consensus stands at $3.0B. Declining customer acquisition costs also bode well for DraftKings’ long-term growth, and the company should turn in its first profitable quarter in Q3 of FY24, with a subsequent 5-year earnings growth rate forecasted at 25%, the analyst tells investors in a research note.