DraftKings Lands 10 Price Target Hikes After Upping 2023 Guidance
The carry cooled sour today, closing bring down past 1.63%, but DraftKings (NASDAQ: DKNG) earned at least 10 bullish damage place revisions from sell-side analysts inwards the second trading day next the tone ending of the company’s upped 2023 revenue guidance.
Last Thursday, the sportsbook manipulator boosted the midpoint of its 2023 sales calculate to $3.185 one million million from $2.95 1000000000000 while estimating the midpoint of its expected earnings before interest, taxes, depreciation, and amortisation (EBITDA) red for this year will follow $315 million, upwardly from $400 million. That joined with constructive commentary from direction on a May group discussion call up with analysts prompted today’s spate of price point increases.
One country some analysts were impressed with was DraftKings’ rising leaders in the iCasino space, which has been aided past the acquisition of Golden Nugget Online Gaming (GNOG).
Turning to iCasino, we trust the acquisition funnel provided by the OSB strength, as swell as the GNOG customer database additions, helped fire ~590 bps of market portion out advance inward the 1Q23, comparative to the 1Q22,” wrote Deutsche Bank’s Carlo Santarelli. “While the deeper than compeer OSB client base of operations favors DKNG in the iCasino engagement with peers, we await competition from existing peers within the segment to heat up up, especially inward light of special new legislative efforts.”
He maintains a “hold” rating on DraftKings, but boosted his terms outlook on the identify to $22 from $15.
Product Improvement Could Be Catalyst for DraftKings
For now, only when KY and Puerto Rico are viewed as potential additions to the unrecorded and legal US sports wagering landscape o'er the residue of 2023. Additionally, there’s load on operators such as DraftKings to lose weight marketing and promotional spending – something may companies are already doing.
As such, 1 of the tonality catalysts for DraftKings and rivals is leveraging unexampled products, including same-game parlays, to pull and continue customers. Stifel psychoanalyst Jeffrey Stantial observed that DraftKings’ improved same-game parlay offering is serving the operator hold more customers next the oddment of football game season.
“With DraftKings launch their unexampled in-house priced live SGP into the 2022/23 NBA season, user retention betwixt football and basketball game seasons improved significantly Y/Y factoring for a great deal of the upside to prior guidance,” wrote the analyst.
He also rates DraftKings a “hold” with a $25 toll target, upwardly from $23. Three of the toll documentary increases on the gaming stock took those estimates to a higher place $30. Those Canaccord going to $34 from $30, Susquehanna River sledding to $36 from $28 and Solomon Guggenheim increasing DraftKings mark to $32 from $27.
Bearish Analyst Begrudgingly Lifts DraftKings Leontyne Price Target
Even noted DraftKings bear Roth MKM analyst Edward VIII Engel united the DraftKings terms target hike up party, though not inwards overly ebullient fashion. Maintaining a “sell” rating on the stock, Engel lifted his damage calculate to $18 from $15 — good below today’s closing impress of $24.18.
In a mention to clients, the analyst cautioned that DraftKings’ revenue and EBITDA growing could slacken inwards significant forge in 2024 and 2025.
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