In-Depth Examination Of 33 Analyst Recommendations For DraftKings

Benzinga · 10/14 17:00

In the last three months, 33 analysts have published ratings on DraftKings (NASDAQ:DKNG), offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 18 15 0 0 0
Last 30D 0 1 0 0 0
1M Ago 3 3 0 0 0
2M Ago 5 3 0 0 0
3M Ago 10 8 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $51.7, a high estimate of $60.00, and a low estimate of $41.00. This current average has decreased by 2.67% from the previous average price target of $53.12.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of DraftKings by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jordan Bender JMP Securities Maintains Market Outperform $51.00 $51.00
Mike Hickey Benchmark Maintains Buy $44.00 $44.00
Joseph Stauff Susquehanna Raises Positive $50.00 $48.00
Brandt Montour Barclays Raises Overweight $45.00 $43.00
Joseph Greff JP Morgan Raises Overweight $54.00 $48.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Stephen Grambling Morgan Stanley Maintains Overweight $47.00 $47.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Robin Farley UBS Raises Buy $58.00 $56.00
Joseph Stauff Susquehanna Raises Positive $48.00 $47.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Chad Beynon Macquarie Maintains Outperform $50.00 $50.00
Mike Hickey Benchmark Raises Buy $44.00 $41.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Barry Jonas Truist Securities Maintains Buy $50.00 $50.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Stephen Grambling Morgan Stanley Lowers Overweight $47.00 $51.00
Brandt Montour Barclays Lowers Overweight $43.00 $53.00
Chad Beynon Macquarie Lowers Outperform $50.00 $52.00
Jed Kelly Oppenheimer Lowers Outperform $55.00 $58.00
Barry Jonas Truist Securities Lowers Buy $50.00 $53.00
Jeffrey Stantial Stifel Lowers Buy $48.00 $50.00
Daniel Politzer Wells Fargo Lowers Overweight $47.00 $53.00
Ben Miller Goldman Sachs Lowers Buy $54.00 $60.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Mike Hickey Benchmark Lowers Buy $41.00 $52.00
Brian Pitz BMO Capital Lowers Outperform $48.00 $54.00
Joseph Stauff Susquehanna Lowers Positive $47.00 $49.00
Bernie McTernan Needham Maintains Buy $60.00 $60.00
Shaun Kelley B of A Securities Lowers Buy $50.00 $54.00
Chad Beynon Macquarie Lowers Outperform $52.00 $54.00
Barry Jonas Truist Securities Lowers Buy $53.00 $55.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to DraftKings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of DraftKings compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of DraftKings's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of DraftKings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on DraftKings analyst ratings.

About DraftKings

DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number two or three revenue share position across states in which it competes. DraftKings is now live with online or retail sports betting in 27 states and iGaming in seven states, with both products available to around 40% of Canada's population. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.

Understanding the Numbers: DraftKings's Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Positive Revenue Trend: Examining DraftKings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.23% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: DraftKings's net margin is impressive, surpassing industry averages. With a net margin of 5.78%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): DraftKings's ROE excels beyond industry benchmarks, reaching 5.99%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): DraftKings's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.59% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.04, DraftKings adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.