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Investing.com - JMP Securities has reiterated its Market Outperform rating for DraftKings Inc. (NASDAQ:DKNG) with a price target of $50.00. According to InvestingPro data, the stock currently trades near $44, with analysts’ targets ranging from $37 to $78, suggesting potential upside.
JMP analyst Jordan Bender maintained the rating and target in a research note released Tuesday.
The firm’s $50 price target is based on a blended valuation approach using multiple metrics of the sports betting company’s future performance.
JMP specifically cited using 17.5 times its estimated 2026 EBITDA for DraftKings as part of the valuation methodology.
The analysis also incorporates 18 times the firm’s projected 2026 free cash flow (FCF) estimates for the online gambling platform.
In other recent news, DraftKings Inc. has seen several positive developments. Bernstein SocGen raised its price target for DraftKings to $52, maintaining an Outperform rating, due to faster-than-expected positive sector trends. BofA Securities also increased its price target to $50, anticipating a better-than-expected second-quarter performance, with a revised revenue estimate of $1.50 billion, surpassing the consensus estimate of $1.41 billion. Mizuho (NYSE:MFG) reiterated its Outperform rating with a $58 price target, highlighting DraftKings’ market share gains in New York. Additionally, Benchmark raised its price target to $50, citing DraftKings’ potential acquisition talks with Railbird Exchange, a prediction market platform.
In parallel, Flutter Entertainment also received a price target increase from Needham, moving it to $340 from $310, while maintaining a Buy rating. The adjustment reflects higher state taxes in New Jersey and Louisiana, partially offset by favorable sports outcomes in May and June. These recent developments indicate a series of strategic moves and positive analyst outlooks for both DraftKings and Flutter Entertainment.
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