Jefferies has revised its price target for DraftKings (DKNG, Financial), reducing it to $60 from a previous $63, while maintaining a Buy rating on the stock. This adjustment comes as the firm updates its financial model for DraftKings ahead of the company's first-quarter report. The revision is attributed to an "unfavorable" hold affecting the latter part of the quarter.
The investment firm has also lowered its first-quarter revenue projections for DraftKings, anticipating earnings of $1.51 billion, down from an earlier estimate of $1.65 billion. This adjustment reflects weaker-than-expected performance during March Madness, a critical high-revenue period for the company.
Despite these changes, the analyst remains optimistic about the broader U.S. gaming industry. The bullish outlook persists, particularly in light of recent market volatility and broader economic concerns. Jefferies continues to see potential in the gaming sector, suggesting long-term opportunities amidst short-term challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 33 analysts, the average target price for DraftKings Inc (DKNG, Financial) is $56.64 with a high estimate of $75.00 and a low estimate of $35.00. The average target implies an upside of 65.52% from the current price of $34.22. More detailed estimate data can be found on the DraftKings Inc (DKNG) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, DraftKings Inc's (DKNG, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DraftKings Inc (DKNG, Financial) in one year is $60.36, suggesting a upside of 76.39% from the current price of $34.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DraftKings Inc (DKNG) Summary page.
