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Investing.com - Bernstein SocGen Group raised its price target on DraftKings Inc. (NASDAQ:DKNG) to $52.00 from $46.00 on Thursday, while maintaining an Outperform rating on the online sports betting company. The stock, currently trading near $44, has delivered an impressive 25% return over the past year, according to InvestingPro data.
The price target increase comes as Bernstein SocGen analyst Ian Moore noted that expected positive sector developments have materialized faster than anticipated. The firm had initially projected these favorable trends would unfold throughout the second half of 2025.
Bernstein SocGen highlighted three key factors driving the revised outlook: reacceleration in online sports betting handle from high-single-digit to mid-teens growth, less aggressive state tax increases than feared, and NFL season performance with fewer favorites winning.
The research firm specifically mentioned that state-reported hold percentages have significantly exceeded expectations, addressing investor concerns about "unlimited downside/capped upside for parlays."
These positive developments have occurred within just six weeks, much faster than Bernstein SocGen’s original timeline that projected these trends would emerge over a more extended period in the latter half of 2025.
In other recent news, DraftKings Inc. is expected to report better-than-expected second-quarter results, with BofA Securities raising its revenue estimate to $1.50 billion, surpassing the consensus estimate of $1.41 billion. This optimism is driven by favorable sports betting margins during May and June. Additionally, Mizuho (NYSE:MFG) has reiterated an Outperform rating on DraftKings, highlighting the company’s market share gains in New York, with growth outpacing the overall market. Benchmark also increased its price target for DraftKings to $50, following reports of acquisition talks with Railbird Exchange, a prediction market platform. Citi has maintained its Buy rating on DraftKings with a $58 price target, following Flutter Entertainment’s announcement of acquiring Boyd Gaming (NYSE:BYD)’s 5% equity interest in FanDuel.
Flutter Entertainment itself saw a price target increase from Needham to $340, while maintaining a Buy rating. Needham adjusted its 2025 estimates for Flutter due to higher state taxes in New Jersey and Louisiana, balanced by favorable sports outcomes. These developments provide investors with key insights into the strategic moves and financial expectations surrounding DraftKings and Flutter Entertainment.
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