DraftKings shares saw an increase on Tuesday following another Buy rating from analysts at MoffettNathanson.
Key Details:
- The analysts, led by Robert Fishman, raised their call on DraftKings stock to Buy from Neutral.
- Their price target was also lifted to $37 from $31.
- The stock rose 4.2% to $29.34 in early trading.
- So far this year, the shares have soared 158%.
- CEO Jason Robins had previously outlined DraftKings’ vision in a fourth-quarter letter to shareholders, emphasizing the need to cut spending and invest in long-term competitive advantages.
- DraftKings has delivered on these goals, with expenses improving and revenues consistently exceeding expectations.
- The company expects to achieve meaningful positive adjusted EBITDA in the fourth quarter of 2023 and full-year adjusted EBITDA profitability in 2024.
- Analysts predict DraftKings will achieve profitability under generally accepted accounting principles in 2025.
Closing the Market Share Gap:
- DraftKings has made recent progress in closing the market share gap with industry leader FanDuel.
- This has been achieved through product improvements and attracting VIP customers.
- According to FactSet, the majority of analysts are bullish on DraftKings, with 71% rating it as a Buy and 29% as Neutral.
Upcoming Earnings Report:
- DraftKings is scheduled to release its third-quarter earnings on November 2 after the market closes.