Mike Hickey, an analyst from Benchmark Co., maintained the Buy rating on DraftKings (DKNG – Research Report). The associated price target remains the same with $51.00.
Mike Hickey has given his Buy rating due to a combination of factors that highlight DraftKings’ strong market position and growth potential. The company has experienced a notable re-acceleration in handle growth, particularly in NBA betting, attributed to increased viewership and engagement. Key events like the Super Bowl and March Madness have further driven customer acquisition and sustained momentum.
DraftKings has also exceeded expectations in improving its hold rate, largely due to a favorable shift in its betting mix, with Same Game Parlays contributing significantly. The expansion of live betting, which now accounts for about 50% of total betting volume, is another critical growth area, supported by strategic acquisitions and partnerships. Additionally, the company’s customer acquisition and retention strategies have been highly effective, achieving record-breaking results and enhancing customer lifetime value. Despite some regulatory challenges, DraftKings remains well-positioned to capitalize on new opportunities in the evolving sports betting landscape.
In another report released on March 5, Morgan Stanley also maintained a Buy rating on the stock with a $53.00 price target.
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