Citi analyst Steven Sheeckutz maintains $DraftKings (DKNG.US)$ with a buy rating, and adjusts the target price from $55 to $59.
According to TipRanks data, the analyst has a success rate of 75.0% and a total average return of 7.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $DraftKings (DKNG.US)$'s main analysts recently are as follows:
DraftKings' Q3 revenue fell short of the market expectations, while its adjusted EBITDA surpassed consensus. The company adjusted its 2024 outlook owing to customer favorable results at the start of Q4 but confirmed its 2025 adjusted EBITDA forecast. Additionally, management indicated a number of factors that could potentially contribute to a more positive 2025 outlook.
Analysts note that following the company's quarterly call, the Q4 guidance appears conservative, implying minimal expectation of favorable shifts for sports books by the end of the year. More crucially, there is an increased confidence in the company's 2025 projections, which, despite not accounting for potential developments in Missouri, suggest several core performance metrics at the mid-point. These include a 15% growth in iGaming, an 11% increase in market-wide handle growth for oriented strand board, and a steady handle market share.
Following the Q3 report, it is noted that while the company's disclosures are becoming more transparent, there remain uncertainties surrounding its forward-looking statements. It's observed that the current market valuation of the company's shares reflects expectations of exceptionally strong performance by the year 2025.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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