Stifel has revised its price target for DraftKings (DKNG, Financial), reducing it from $57 to $53. Despite this adjustment, the firm maintains a Buy rating on the shares. The change reflects recent unfavorable results in gaming outcomes during March, which have prompted expectations of a first-quarter adjusted EBITDA shortfall for U.S. online sports betting and iCasino operators.
The analyst outlines that both DraftKings and Flutter Entertainment (FLUT) are worth holding until their first-quarter earnings reports are released. However, Stifel suggests a temporary reduction in holdings due to unfavorable seasonal trends and a potentially challenging legislative landscape perceived as having a negative bias.
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 $55.92 with a high estimate of $75.00 and a low estimate of $35.00. The average target implies an upside of 72.36% from the current price of $32.44. 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 $60.24, suggesting a upside of 85.7% from the current price of $32.44. 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.
