{"id":319235,"date":"2024-05-06T16:43:11","date_gmt":"2024-05-06T21:43:11","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=319235"},"modified":"2024-05-07T08:56:40","modified_gmt":"2024-05-07T13:56:40","slug":"draftkings-stock-recovers-as-analysts-boost-price-targets","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/","title":{"rendered":"DraftKings Stock Surges as Analysts Rush to Lift Price Targets"},"content":{"rendered":"

Following a surprise sell-off Friday on the back of a strong first-quarter earnings report, DraftKings (NASDAQ: DKNG) recouped those losses Monday as a slew of analysts boosted price targets on the high-flying stock.<\/p>\n

\"DraftKings\"
DraftKings stock is highlighted at the Nasdaq market site in New York City. At least nine analysts raised price targets on the stock. (Image: Nasdaq)<\/figcaption><\/figure>\n

On above-average volume, DraftKings gained 5.4% to start the week after at least six analysts lifted price forecasts on the gaming company. That followed at least three such instances over the weekend. While he didn\u2019t join his colleagues in increasing a price target on DraftKings<\/a>, Macquarie analyst Chad Beynon reiterated an \u201coutperform\u201d rating and $54 price objective on the stock. That implies upside of almost 22.7% from Monday\u2019s close.<\/p>\n

Beynon pointed to DraftKings getting a handle on expenses as well as the operator\u2019s compelling free cash flow (FCF) traits as among the reasons for his bullish view.<\/p>\n

Most important, in our view, DKNG continues to hold share (~30%) in a market that continues to grow,\u201d observed Beynon. \u201cBottom line, we don’t believe there are risks to DKNG’s 15-30% multi-year top-line growth path, and we believe its data analytic capabilities bode well for adjacent markets. Off or our ’26E earnings before interest, taxes, depreciation, and amortization, DKNG trades at 13.3x.\u201d<\/p><\/blockquote>\n

Last week, the gaming company posted an unexpected first-quarter profit on the basis of non-generally accepted accounting principles (non-GAAP) while boosting the midpoint<\/a> of its 2024 EBITDA and revenue guidance.<\/p>\n

DraftKings Stock Offers \u2018Constructive Setup\u2019<\/h2>\n

In addition to management\u2019s ability to rein in costs, DraftKings has been one of the best-performing gaming stocks since the start of 2023 because the operator allayed concerns about profitability, cash burn, and valuation.<\/p>\n

\n

As a result of increasingly sturdy fundamentals and rising profitability, DraftKings is arguably undervalued relative to the broader universe of emerging growth stocks, and the shares now offer a \u201cconstructive setup,\u201d according to Stifel analyst Jeffrey Stantial.<\/p>\n<\/div>\n

\u201cWe continue to see a constructive setup into the remainder of 2024 as underlying fundamentals remain healthy (with runway left, in our view), Jackpocket cross-sell should prove a material uplift, and DraftKings’ capital allocation update at Q2 earnings may include initial return of capital,\u201d he wrote in a report to clients.<\/p>\n

Stantial, who reiterated a \u201cbuy\u201d rating on the stock while raising his price target to $51 from $50, said it\u2019s possible that when DraftKings reports second-quarter earnings, the company could unveil some form of capital return to shareholders<\/a>, though he didn\u2019t say if buybacks or dividends were more likely.<\/p>\n

Cross-Selling Catalyst for DraftKings Stock, Too<\/h2>\n

DraftKings has an established history of cross-selling new offerings to clients. It was successful in transitioning many daily fantasy sports (DFS) competitors to online sports betting and it\u2019s recognized similar benefits by marketing iGaming to sports bettors in the five states in which it offers the former.<\/p>\n

\n

Stantial believes the gaming company can realize similar synergies with online lottery provider Jackpocket, which DraftKings announced the $750 million acquisition<\/a> of in February.<\/p>\n<\/div>\n

\u201cWe see tailwinds here persisting at minimum through the remainder of 2024, with upside thereafter as management executes on an attractive & untapped cross-sell opportunity with Jackpocket,\u201d said the Stifel analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a surprise sell-off Friday on the back of a strong first-quarter earnings report, DraftKings (NASDAQ: DKNG) recouped those losses Monday as a slew of analysts boosted price targets on the high-flying stock. On above-average volume, DraftKings gained 5.4% to start the week after at least six analysts lifted price forecasts on the gaming company. […]<\/p>\n","protected":false},"author":46,"featured_media":258908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,1074],"tags":[81903,81871,80968],"acf":[],"yoast_head":"\nDraftKings Stock Recovers As Analysts Boost Price Targets<\/title>\n<meta name=\"description\" content=\"DraftKings Stock Surges as Analysts Rush to Lift Price Targets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stock Recovers As Analysts Boost Price Targets\" \/>\n<meta property=\"og:description\" content=\"DraftKings Stock Surges as Analysts Rush to Lift Price Targets.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-06T21:43:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-07T13:56:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/\",\"name\":\"DraftKings Stock Recovers As Analysts Boost Price Targets\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"datePublished\":\"2024-05-06T21:43:11+00:00\",\"dateModified\":\"2024-05-07T13:56:40+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings Stock Surges as Analysts Rush to Lift Price Targets.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-recovers-as-analysts-boost-price-targets\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/DKNG-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"DraftKings stock highlighted at the Nasdaq market site in New York City. 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