Bernstein Lowers Price Target for DraftKings (DKNG)

Bernstein analyst Ian Moore reaffirmed an Outperform rating on DraftKings (DKNG) but lowered the price target from $55.00 to $50.00, reflecting a 9.09% reduction in expected stock value. Despite this adjustment, the positive rating signals ongoing confidence in DraftKings' potential in the market.

Analyst Sentiment and Market Position

DraftKings continues to receive bullish evaluations from multiple analysts, combining optimism with revised market forecasts. Investors are advised to watch these shifts closely as they could influence the company's stock performance.

Company Background and Market Reach

Founded in 2012 as a pioneer in daily fantasy sports, DraftKings expanded into online sports and casino gambling following a 2018 Supreme Court decision that allowed states to legalize such activities. The company typically ranks second or third in revenue share in states where it operates.

• Sports betting available online or in retail locations in 28 states.
• i-Gaming active in 5 states.
• Both products cover about 40% of Canada's population.

Revenue Breakdown (2024)

• Sports revenue: 61% of total sales
• i-Gaming revenue: 32%
• Fantasy and lottery: 7%

Additional Ventures

DraftKings also develops and licenses online gaming products and operates a commission-based marketplace for non-fungible tokens (NFTs).

Bernstein analyst Ian Moore stated: "Despite the adjusted price target, the Outperform rating suggests continued confidence in DraftKings' market potential."