DraftKings Inc. has been making waves in the stock market, delivering substantial returns for investors throughout the year. Analysts are optimistic about the company’s future, anticipating further significant gains.
Impressive Performance: On Friday, DraftKings shares surged by 16.5%, marking their best single-day performance in almost a year. This surge was fueled by an earnings report that surpassed expectations and a positive outlook for the company. Overall, the stock has experienced a staggering 196% increase in value since the beginning of 2023.
Dominating the Market
DraftKings has successfully captured a larger market share and is consistently moving towards achieving profitability. MoffettNathanson analyst Robert Fishman acknowledges this progress, stating that the company’s path to “real profitability” is becoming clearer. Furthermore, DraftKings’ projected adjusted earnings before interest, taxes, depreciation, and amortization of $350 million to $450 million in 2024 exceeded the consensus view.
Promising Future Growth
Fishman remains confident in DraftKings’ momentum and predicts continued robust top-line growth in the coming year. He also highlights the company’s dedication to managing expenses strategically, which further strengthens DraftKings’ prospects for achieving meaningful profitability. As a result, Fishman increases his price target for DraftKings’ stock to $38 while maintaining a buy rating.
Daniel Politzer of Wells Fargo commends DraftKings for its outstanding performance, referring to the company as “firing on all cylinders.” With an increasing market share and enhanced operating scale, DraftKings is undoubtedly capitalizing on its momentum and driving towards future success.
As a professional copywriter, your investment portfolio should not overlook DraftKings Inc. The company’s consistent growth, improving path to profitability, and positive outlook make it an enticing investment opportunity.
DKNG’s Investor Appeal Set to Broaden
According to a recent report by Piper Sandler, DKNG’s investor appeal is expected to broaden due to an anticipated further inflection in Ebitda and attractive industry dynamics. Analysts have expressed positive sentiments towards the company, with Matt Farrell from Piper Sandler stating that the upcoming investor day on November 14th will serve as the next significant catalyst for DKNG.
Farrell believes that the tailwinds currently benefiting the company on both the revenue and cost fronts show no signs of deterioration. He eagerly awaits the investor day as an opportunity to gain more insight into DraftKings’ future strategy. While keeping an eye on the competitive dynamics within the industry, Farrell is confident that DraftKings will at least maintain its market share.
Additionally, with the launch of ESPN Bet on the horizon, Farrell expects DraftKings to continue its leadership position in the market. Piper Sandler rates the stock at overweight and has increased its price target to $40 from $35 in a recently released report.
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