DraftKings (NASDAQ:DKNG)
On Friday morning, after a solid earnings report, shares of DraftKings (NASDAQ:DKNG) soared. Wall Street analysts have started commenting on the update. In general, we’re concentrating on DraftKings’ (DKNG) promising growth patterns through 2023 and our goal of reaching EBITDA profitability by 2024.
DraftKings stock was raised by BTIG to Buy from a Hold. Analyst Clark Lampen predicted that “DraftKings will solidify a leadership position in OSB, and the extra freedom to spend elsewhere should enable it to be more competitive moving ahead as new prospects like iGaming emerge” in his last report.
Jefferies maintained its Buy recommendation and pointed out that DKNG’s Q1 results backed with the company’s stated desire to incorporate adequate fiscal restraint into its nonetheless ambitious expansion ambitions. As one analyst put it, “most significantly, the beat and revised outlook confirm our view that DKNG’s specialized posture in the developing industry is solid and liquidity should stay adequate.”
According to Roth MKM analyst Edward Engel, the bulls were anticipating a Q4 beat and a hike in the 2023 projection. Still, the earnings results were much better than that.
Piper Sandler predicted that DraftKings (DKNG) will post earnings that were much above the consensus mark, on to positive developments in client retention, monetization, and the company’s sports book. The company maintained its Overweight status.
Morgan Stanley said that the beat-and-raise and current states reaching profitability bolster the bull thesis. Analyst Thomas Allen said that the firm “is proving the road to profitability highlighted in our start and forecast, which should drive a re-rating on an absolute basis as well as decoupling from unprofitable growth companies.” Currently, DraftKings stock is rated Overweight by the business, and the price goal set for it is $20.
Premarket trading showed that DraftKings stock was up 8.87% to $19.39.
Image: Getty Images © The Boston Globe
