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Investing.com - BMO Capital raised its price target on DraftKings Inc. (NASDAQ:DKNG) to $65.00 from $64.00 on Tuesday, while maintaining an Outperform rating on the stock. The company, currently valued at $21.5 billion, has seen its stock surge over 20% in the past year.
The firm cited strong state gaming disclosures from May through mid-July as the primary reason for the adjustment, leading to increases in its revenue estimates for Q2 2025 and Q3 2025 by 3.5% and 1.7%, respectively.
BMO Capital’s total fiscal year 2025 revenue estimate for DraftKings has been raised by 1.2% to the high end of the company’s guidance range of $6.4 billion.
Despite acknowledging ongoing regulatory pressures including taxes, prediction markets, and stalled state legalization efforts, BMO Capital believes DraftKings stock can still outperform due to "continued execution on the fundamental story that leads to meaningful FCF generation."
The firm considers DraftKings shares attractively valued at 16 times fiscal year 2026 estimated free cash flow and continues to view the stock as a top pick in its coverage universe.
In other recent news, DraftKings Inc. has been the focus of several analyst updates. BofA Securities raised its price target for DraftKings to $50, citing expectations for better-than-expected second-quarter earnings, with revenue projected to reach $1.50 billion, surpassing the consensus estimate of $1.41 billion. Bernstein SocGen Group also increased its price target to $52, maintaining an Outperform rating due to faster-than-anticipated positive sector developments. JMP Securities reiterated its Market Outperform rating with a $50 price target, while Mizuho (NYSE:MFG) reaffirmed an Outperform rating and a $58 price target, noting DraftKings’ recent market share gains in New York. These developments highlight a growing confidence among analysts in DraftKings’ performance and market position.
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