DraftKings stock price target raised to $54 from $53 at Jefferies

Investing.com - Jefferies raised its price target on DraftKings Inc. (NASDAQ:DKNG) to $54.00 from $53.00 on Friday, while maintaining a Buy rating on the sports betting company’s shares. The stock, currently trading at $45.20 with a market cap of $22.42 billion, appears undervalued according to InvestingPro analysis.

The firm cited DraftKings’ stronger-than-expected quarterly results and maintained fiscal year 2025 guidance despite various headwinds in the sector. These results helped alleviate previous concerns about tax rates, market launches, and structural hold rates. InvestingPro data shows impressive revenue growth of 25.8% over the last twelve months, with analysts expecting continued sales growth this year.

Jefferies highlighted several positive factors that suggest continued momentum for DraftKings, including the seasonal tailwind from the upcoming football season and an increased parlay mix in the company’s betting offerings.

The firm also pointed to DraftKings’ leadership position in in-play betting as a competitive advantage in the sports betting market. Additionally, the company faces comparatively easy year-over-year comparisons against previous periods of low hold.

DraftKings has maintained its full-year 2025 guidance despite facing headwinds, which Jefferies interpreted as a sign of operational strength and market position.

In other recent news, DraftKings Inc. has reported its second-quarter 2025 earnings, significantly surpassing expectations. The company achieved an earnings per share of $0.38, far exceeding the forecasted $0.13, and reported revenue of $1.51 billion, surpassing the anticipated $1.4 billion. This strong performance was attributed to favorable sports outcomes and core value drivers. Goldman Sachs responded by raising its price target on DraftKings to $61, maintaining a Buy rating. Similarly, Needham reiterated its Buy rating with a $60 price target, showing confidence in the company’s future despite challenges like higher taxes and costs associated with its Missouri launch. Stifel also maintained its Buy rating and a $51 price target, noting that DraftKings’ adjusted EBITDA exceeded expectations by 24%. The company confirmed its full-year 2025 guidance, considering factors such as tax increases in several states. These developments highlight DraftKings’ robust financial performance amid regulatory and tax challenges.

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