DraftKings Favored By Analyst In Competitive Sports Betting Sector: 'The King Isn't Giving Up Its Crown'
Portfolio Pulse from Chris Katje
Bank of America analyst Shaun C. Kelley maintains a Buy rating on DraftKings Inc (NASDAQ:DKNG) with a price target of $45, citing strong financials despite increased competition in the sports betting sector. Kelley raised revenue estimates for DraftKings for fiscal years 2024 and 2025 and anticipates a Q4 earnings beat and a possible guidance raise for 2024. DraftKings is expected to report Q4 earnings on Feb. 15, with analysts predicting an EPS of 9 cents and revenue of $1.241 billion. DraftKings shares have risen 1.64% to $39.10, with a 160% increase over the past year.

January 29, 2024 | 5:53 pm
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NEUTRAL IMPACT
MGM Resorts International's BetMGM platform is mentioned as a strong competitor in the sports betting sector, which could impact investor sentiment.
While MGM's BetMGM is identified as a competitor, the direct impact on MGM's stock is uncertain without specific financial data or changes in market share.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
PENN Entertainment Inc's launch of ESPN Bet is noted as increased competition for DraftKings, potentially affecting the market dynamics.
PENN's entry into the market with ESPN Bet introduces more competition, but the short-term impact on PENN's stock is not clear without further details on performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
DraftKings Inc is favored by Bank of America analyst Shaun C. Kelley, who maintains a Buy rating and a price target of $45. The company is expected to beat Q4 earnings and may raise its 2024 guidance.
Positive analyst sentiment and raised revenue estimates suggest strong performance and potential for stock price appreciation in the short term, especially if Q4 earnings beat expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100