DraftKings price target lowered to $47 from $51 at Morgan Stanley

Morgan Stanley analyst Stephen Grambling lowered the firm’s price target on DraftKings to $47 from $51 and keeps an Overweight rating on the shares. DraftKings’ Q2/FY24 EBITDA guidance was below the firm’s estimates on weaker profitability from higher customer acquisition, the analyst tells investors in a research note. While catalysts the firm focused on played out, the stock has stayed under pressure, and the firm sees the next leg higher being driven by future revisions and buyback execution.