DraftKings stock (DKNG) has had a difficult six months, but Wall Street sentiment is shifting in a bullish direction. Just this week, multiple analysts have issued positive takes and it has sparked momentum. DNKG stock is rising today after receiving a price target upgrade from Wells Fargo, just one day after BMO Capital’s Brian Pitz reiterated a Buy rating.
Does this mean that Draftkings is finally about to snap its losing streak after months of consistent volatility? If these trends persist, it is certainly possible, particularly as these analysts predict growth ahead for the sports betting company.
What’s Going On with DraftKings Stock?
While shares tumbled this morning, DraftKings stock rebounded to close in the green, and its current trajectory suggests it will continue to rise. Even after months of trending downward, DKNG has had an excellent 12-month period, with gains of 31.8%.
TipRanks reporter Catie Powers highlighted the strength that DKNG stock has shown while reporting on Pitz’s positive take. “DraftKings has demonstrated resilience by aligning its revenue expectations with market consensus and adjusting its EBITDA estimates to reflect the NFL promotion cycle,” she noted.
Pitz isn’t the only analyst who believes DraftKings can continue to bounce back. Wells Fargo analyst Daniel Politzer raised his DKNG stock price target from $47 to $52 today, indicating upside potential of 38%. Like Pitz, he maintains a Buy rating, which puts them in the majority among analysts who have rated the stock.
Is DraftKings Stock a Strong Buy?
Overall, Wall Street analysts have a Strong Buy consensus rating on DKNG stock based on 25 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DKNG price target of $48.83 per share implies 29.6% upside potential.
Early in October, analyst Joseph Stauff of Susquehanna also raised his DKNG stock price target from $48 to $50, maintaining a Buy rating. This forecast implies an upside potential of 32.8%.
