DraftKings maintained its 2025 outlook, while rival Flutter, which operates FanDuel, bumped its full-year profit view.
Two key analysts bumped up their price targets on DraftKings (DKNG) on Thursday, after the online gaming company’s quarterly earnings report.
Shares were down 0.4% premarket on Friday.
CFRA reiterated its ‘Buy’ rating, while raising the price target by $7 to $57, implying a 26% upside to the stock’s last close.
“We believe DraftKings is becoming the clear leader in mobile gaming due to its industry leading technology and mobile app,” the research firm said. “The company’s growth continues to impress, and profitability metrics continue to improve.”
Jefferies, which also reiterated a ‘Buy’ rating, increased its price target modestly to $54 from $53. The research firm’s comments were slightly more cautious than CFRA’s, noting that DraftKings faces a “complex set of dynamics” including concerns around tax rates, new market launches, and structural hold.
However, those were tempered by a stronger-than-expected second-quarter performance and the company maintaining its full-year outlook.
Rival Flutter Entertainment (FLUT), which operates FanDuel, raised its forecast for full-year profit growth on Thursday, after reporting handily beating revenue and adjusted estimates for the last quarter.
Meanwhile, Cathie Wood’s Ark Invest, a key technology investor, sold about $7 million worth of shares in trades made on Thursday.
On Stocktwits, the retail sentiment for DKNG fell a few notches but remained in the ‘extremely bullish’ zone as of early Friday.
A user said it expects a major acquisition by DraftKings in the near future, noting that “The Golden Nugget and Simplebet acquisition announcements both occurred in.. August. (2022 and 2024, respectively).”
Stocktwits reported that DraftKings is exploring targets in the market prediction space and has recently held talks with the New York-based Railbird Exchange.
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