DraftKings Can Fight Off Sports Betting Competition, Analysts Say After Q3 Earnings
Portfolio Pulse from Chris Katje
DraftKings' Q3 earnings have exceeded expectations, leading to analysts raising their price targets. Stifel analyst Jeffrey A. Stantial raised the price target from $33 to $36, Truist analyst Barry Jonas from $44 to $45, and Needham analyst Bernie McTernan from $44 to $50. Despite potential competition from ESPN Bet, launched by PENN Entertainment, analysts believe DraftKings can maintain its market share due to its strong product execution.
November 06, 2023 | 4:53 pm
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NEUTRAL IMPACT
PENN Entertainment is launching ESPN Bet, which could pose competition to DraftKings. However, analysts believe customers will likely return to DraftKings after trying out the competition.
PENN Entertainment's launch of ESPN Bet could pose competition to DraftKings. However, analysts believe that customers will likely return to DraftKings after trying out ESPN Bet, indicating that the impact on PENN's stock price in the short term is uncertain.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
DraftKings' Q3 earnings exceeded expectations, leading to raised price targets by analysts. Despite potential competition, DraftKings is expected to maintain its market share due to strong product execution.
DraftKings' strong Q3 earnings have led to increased confidence among analysts, reflected in raised price targets. Despite potential competition from ESPN Bet, DraftKings' strong product execution is expected to help it maintain its market share, which is likely to positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100