DraftKings To Register Positive 2Q EBITDA Amid Strength In Hold Rates: Analyst Forecasts
Portfolio Pulse from Nabaparna Bhattacharya
ROTH MKM analyst Edward Engel has reiterated a Sell rating on DraftKings Inc. (NASDAQ:DKNG), raising the price target to $20 from $18. This is due to the expected positive 2Q EBITDA, driven by higher hold rates over the past four quarters. However, the analyst believes that the recent hold improvements are more luck-driven than investors acknowledge. Despite bullish investor sentiment, the analyst warns that increased promotional intensity could limit the upside to a 2Q beat.
July 18, 2023 | 6:54 pm
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DraftKings' stock rating has been reiterated as Sell by ROTH MKM analyst Edward Engel, with a raised price target of $20. Despite expected positive 2Q EBITDA, the analyst warns of luck-driven hold improvements and potential limits to a 2Q beat due to increased promotional intensity.
The analyst's reiteration of a Sell rating, despite a raised price target, indicates skepticism about DraftKings' recent performance. The warning about luck-driven hold improvements and potential limits to a 2Q beat due to increased promotional intensity could negatively impact investor sentiment and put downward pressure on the stock price in the short term.
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