DraftKings price target raised to $63 from $54 at Jefferies

Jefferies raised the firm’s price target on DraftKings (DKNG) to $63 from $54 and keeps a Buy rating on the shares post the Q4 report. The firm says that while DraftKings is not contemplating the favorable year-to-date sports results in its reiterated $900M-$1.0B fiscal 2025 EBITDA guidance, the higher end of that range is now incrementally more likely. Its estimates moved higher as a result. Jefferies believes DraftKings will continue to see sales growth, especially from in-game betting and increasing efficiency, that will increasingly convert to EBITDA and free cash flow.