Guggenheim maintains Buy rating on DraftKings stock after strong Q2

Investing.com - DraftKings Inc. (NASDAQ:DKNG) received a reiterated Buy rating and $60.00 price target from Guggenheim following the company’s second-quarter earnings report. The stock, with a market capitalization of $22.4 billion, is trading near its 52-week high of $53.61, having delivered a strong year-to-date return of 21.5%.

The sports betting company reported second-quarter revenue of $1,513 million, representing 37% year-over-year growth and exceeding both Guggenheim’s estimate of $1,388 million and the consensus forecast of $1,424 million.

DraftKings delivered adjusted EBITDA of $301 million for the quarter, significantly outperforming Guggenheim’s projection of $227 million and the consensus estimate of $244 million.

The company maintained its full-year 2025 revenue and adjusted EBITDA guidance despite consumer-friendly outcomes in May and June, which will be partially offset by higher taxes and the timing of Missouri’s launch in December.

Guggenheim has raised its 2025 revenue forecast for DraftKings to $6.38 billion and adjusted EBITDA to $862 million, noting that underlying consumer demand for DraftKings products remains strong with no discernible macroeconomic impact to date.

In other recent news, DraftKings Inc. has seen a series of positive developments from various analyst firms. The company reported second-quarter earnings that surpassed expectations, with adjusted EBITDA exceeding forecasts by 24%, as noted by Stifel. This strong performance led Goldman Sachs to raise its price target for DraftKings to $61, highlighting favorable sports outcomes and core value drivers as contributors to the impressive results. Jefferies also increased its price target to $54, citing stronger-than-expected quarterly results and maintained fiscal year 2025 guidance.

Meanwhile, Needham reiterated its Buy rating on DraftKings, maintaining a $60 price target despite challenges such as higher taxes and new market launches. Stifel also maintained a Buy rating with a $51 price target, acknowledging the company’s ability to manage tax and regulatory headwinds. In contrast, Flutter Entertainment received attention from MoffettNathanson, which raised its price target to $350, citing potential upside to its 2030 U.S. EBITDA estimate. These recent developments reflect the analysts’ continued confidence in both companies’ growth prospects and strategic positioning in the market.

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