DraftKings price target lowered to $52 from $53 at BMO Capital

BMO Capital lowered the firm’s price target on DraftKings (DKNG) to $52 from $53 and keeps an Outperform rating on the shares. The company’s Q4 results were a “bad beat”, and the firm believes that it remains best positioned to benefit from ongoing online sports betting legalization efforts, the analyst tells investors in a research note. Given the attractive FY25 setup, including expectations for 35% growth, 15% adjusted EBITDA margins, and meaningful free cash flow ramp, the firm is overlooking the near-term pressure on Hold rates, BMO added.