Stephen Grambling, an analyst from Morgan Stanley, maintained the Buy rating on DraftKings (DKNG – Research Report). The associated price target remains the same with $53.00.
Stephen Grambling’s rating is based on DraftKings’ strong financial outlook and strategic initiatives. The company is confident in achieving its upgraded revenue targets for 2025, with expectations of $900-$1,000 million in EBITDA. This optimism is supported by better-than-expected performance in key metrics like hold and handle, alongside new product initiatives aimed at driving growth in live betting and iGaming.
Additionally, DraftKings is leveraging artificial intelligence to enhance various aspects of its operations, from pricing to customer service, which could further bolster its competitive edge. The company’s robust capital structure, highlighted by an oversubscribed term loan, positions it well for potential buybacks or strategic acquisitions. Moreover, DraftKings sees more opportunities than risks in legislative changes, with expectations of new states legalizing iGaming and online sports betting, which could expand its market presence.
In another report released on February 26, Jefferies also maintained a Buy rating on the stock with a $63.00 price target.