DraftKings stock reiterated as Buy at Jefferies amid favorable metrics

Published 01/10/2025, 10:18
DraftKings stock reiterated as Buy at Jefferies amid favorable metrics

Investing.com - Jefferies has reiterated its Buy rating and $54.00 price target on DraftKings Inc. (NASDAQ:DKNG), citing favorable quarter-to-date metrics despite recent share weakness. The company’s revenue grew 25.8% in the last twelve months, with analysts expecting 34% growth this fiscal year.

The firm notes that DraftKings’ New York quarter-to-date handle is tracking approximately 12% higher year-over-year, while gross gaming revenue (GGR) is up roughly 14% compared to the same period last year.

State-released monthly GGR figures for July and August have shown nearly 20% year-over-year growth on average, according to Jefferies’ analysis.

The research firm also highlights strong iGaming results quarter-to-date, with metrics up over 20% year-over-year on average thus far.

Jefferies believes the recent weakness in DraftKings shares is overdone and current price levels provide an attractive entry point for investors.

In other recent news, DraftKings Inc. has shown significant developments that are capturing investors’ attention. The company has maintained a Buy rating from Benchmark, with a price target of $53.00, following strong performance in New York during Week 3 of the NFL season, where its hold increased by 21% year-over-year. UBS has also maintained a Buy rating on DraftKings, though it lowered the price target to $56.00 from $58.00, citing a $200 million negative impact from tax increases. DraftKings has further expanded its reach through a multi-year advertising agreement with NBCUniversal, securing exclusive integrations and digital sponsorships across various sports properties, including major events like the Super Bowl and FIFA Men’s World Cup.

Meanwhile, Flutter Entertainment has had its stock price target reduced by JMP Securities to $340.00 from $345.00, though the firm maintains a Market Outperform rating. Both DraftKings and Flutter Entertainment experienced stock declines after Robinhood Markets reported strong options trading volumes and plans to expand its prediction markets internationally. These recent developments indicate ongoing strategic movements within the online gaming and sports betting sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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