Deep Dive Into DraftKings Stock: Analyst Perspectives (24 Ratings)
In the latest quarter, 24 analysts provided ratings for DraftKings (NASDAQ:DKNG), showcasing a mix of bullish and bearish perspectives.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 14 | 9 | 1 | 0 | 0 |
| Last 30D | 1 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 3 | 0 | 0 | 0 |
| 2M Ago | 3 | 2 | 0 | 0 | 0 |
| 3M Ago | 8 | 3 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $53.71, a high estimate of $60.00, and a low estimate of $35.00. This upward trend is evident, with the current average reflecting a 0.32% increase from the previous average price target of $53.54.
Investigating Analyst Ratings: An Elaborate Study
A comprehensive examination of how financial experts perceive DraftKings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Chad Beynon | Macquarie | Lowers | Outperform | $52.00 | $54.00 |
| Barry Jonas | Truist Securities | Lowers | Buy | $53.00 | $55.00 |
| Brandt Montour | Barclays | Lowers | Overweight | $53.00 | $54.00 |
| Jeffrey Stantial | Stifel | Maintains | Buy | $50.00 | $50.00 |
| Jed Kelly | Oppenheimer | Lowers | Outperform | $58.00 | $60.00 |
| Curry Baker | Guggenheim | Lowers | Buy | $52.00 | $53.00 |
| Daniel Politzer | Wells Fargo | Lowers | Overweight | $53.00 | $54.00 |
| Bernie McTernan | Needham | Maintains | Buy | $60.00 | $60.00 |
| Joseph Stauff | Susquehanna | Lowers | Positive | $49.00 | $56.00 |
| Jeffrey Stantial | Stifel | Lowers | Buy | $50.00 | $51.00 |
| Jed Kelly | Oppenheimer | Maintains | Outperform | $60.00 | $60.00 |
| Bernie McTernan | Needham | Maintains | Buy | $60.00 | $60.00 |
| Robin Farley | UBS | Raises | Buy | $60.00 | $56.00 |
| Jeffrey Stantial | Stifel | Raises | Buy | $51.00 | $50.00 |
| David Katz | Jefferies | Raises | Buy | $54.00 | $52.00 |
| Carlo Santarelli | Deutsche Bank | Raises | Hold | $35.00 | $34.00 |
| Brandt Montour | Barclays | Raises | Overweight | $54.00 | $52.00 |
| Brian Pitz | BMO Capital | Raises | Outperform | $54.00 | $51.00 |
| Clark Lampen | BTIG | Raises | Buy | $55.00 | $53.00 |
| Bernie McTernan | Needham | Raises | Buy | $60.00 | $58.00 |
| Bernie McTernan | Needham | Maintains | Buy | $58.00 | $58.00 |
| Mike Hickey | Benchmark | Raises | Buy | $52.00 | $50.00 |
| Joseph Stauff | Susquehanna | Raises | Positive | $56.00 | $54.00 |
| Mike Hickey | Benchmark | Maintains | Buy | $50.00 | $50.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to DraftKings. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of DraftKings compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of DraftKings's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into DraftKings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on DraftKings analyst ratings.
Unveiling the Story Behind DraftKings
DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number two or three revenue share position across states in which it competes. DraftKings is now live with online or retail sports betting in 27 states and iGaming in seven states, with both products available to around 40% of Canada's population. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.
Breaking Down DraftKings's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: DraftKings's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 52.67%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -12.13%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): DraftKings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -17.06%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): DraftKings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -3.68%, the company may face hurdles in achieving optimal financial performance.
Debt Management: DraftKings's debt-to-equity ratio is below the industry average at 1.62, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: Simplified
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.