Mizuho Securities analyst Benjamin Chaiken has maintained their bullish stance on DKNG stock, giving a Buy rating today.
Benjamin Chaiken has given his Buy rating due to a combination of factors that highlight DraftKings’ promising financial performance and strategic positioning. The company reported higher than expected EBITDA, surpassing both Chaiken’s and the Street’s estimates, which demonstrates strong financial management and operational efficiency. Additionally, DraftKings maintained its FY25 EBITDA guidance, which reflects confidence in its long-term growth prospects despite potential concerns over lower hold rates.
Furthermore, DraftKings’ recent performance during the Super Bowl showed record revenue and an improved mix, suggesting that the company is on a strong trajectory. The company has also raised its revenue guidance driven by initiatives like live betting, which indicates an optimistic outlook on future revenue streams. These factors, along with encouraging management commentary and transparency in reporting key performance indicators, have contributed to Chaiken’s positive assessment of the stock.
According to TipRanks, Chaiken is a 4-star analyst with an average return of 8.7% and a 57.49% success rate. Chaiken covers the Consumer Cyclical sector, focusing on stocks such as Carnival, Hyatt Hotels, and Royal Caribbean.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $50.00 price target.
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