Bernstein Lowers Price Target for DraftKings (DKNG)
Analyst Update
Bernstein analyst Ian Moore reaffirmed an Outperform rating for DraftKings (DKNG), while revising the price target from $55 to $50, indicating an estimated 9% decrease in future stock value. Despite the adjustment, the positive rating shows that confidence in the company’s long-term market position remains strong.
Market Context
DraftKings continues to attract favorable assessments from multiple financial analysts, demonstrating a balance between market optimism and cautious revisions to valuation expectations. Investors are advised to follow these updates closely as they may affect stock movement.
Company Overview
Founded in 2012 as a leader in daily fantasy sports, DraftKings expanded significantly after the 2018 Supreme Court ruling that permitted states to legalize online sports betting. The company now operates sports betting services in 28 states and online gaming in 5 states, along with access to about 40% of the Canadian population.
Revenue Breakdown (2024)
- Sports betting: 61% of total revenue
- I-gaming: 32%
- Fantasy and lottery: 7%
Additional Operations
DraftKings also manages a marketplace for non-fungible tokens (NFTs) on a commission model and develops online gaming solutions licensed to industry partners.
"Despite lowering its price target, Bernstein continues to express overall confidence in DraftKings' growth potential."
Author Summary
Bernstein slightly reduced DraftKings’ target price but maintained a positive outlook, reflecting steady confidence in the company’s expanding presence in sports and online gaming markets.