DraftKings To Gain From Product Innovation & Competitive Differentiation, Analyst's Spot On Total Addressable Market Prospects
Portfolio Pulse from Nabaparna Bhattacharya
Benchmark analyst Mike Hickey reiterates a Buy rating on DraftKings Inc (NASDAQ:DKNG), raising the price target to $41 from $37. The company's focus on product innovation and competitive differentiation is expected to leverage the growing Total Addressable Market (TAM), which is projected to increase from $20 billion to $30 billion by 2028. DraftKings' 2025 revenue guidance is in the mid-$5 billion range, with AEBITDA estimated at $900 million-$1 billion. The company anticipates more U.S. states will legalize OSB and iGaming, aiming to operate in 25 states and Puerto Rico by 2024. DraftKings also expects a long-term Adjusted EBITDA increase of approximately $1.5 billion above current guidance, potentially adding $6.2 billion more annually. DKNG shares are trading slightly lower at $36.90.
November 15, 2023 | 8:31 pm
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DraftKings Inc's price target has been raised to $41 by Benchmark analyst Mike Hickey, who maintains a Buy rating. The company's strategic initiatives and market expansion are expected to drive growth, with a positive outlook for 2025 revenue and AEBITDA.
The increase in DraftKings' price target by an analyst typically signals confidence in the company's future performance and growth prospects. The focus on product innovation and market expansion, along with the positive revenue and AEBITDA projections, are likely to be viewed positively by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100