DraftKings Stock Has Upside To Street Estimates, Analyst Says: Sports Betting Play Will 'Benefit From Healthy Growth'
Portfolio Pulse from Chris Katje
Goldman Sachs analyst Ben Miller initiated coverage on DraftKings Inc (NASDAQ:DKNG) with a Buy rating and a $60 price target, citing strong unit economics, growing profitability, and a growing total addressable market in the sports betting sector. Miller expects DraftKings to see compounded annual revenue growth of 21% from 2023 to 2028, with potential upside to Street revenue and EBITDA targets. DraftKings shares have risen 65% over the last nine months but still trade below their historical average and peers in terms of growth adjusted revenue multiple.
April 16, 2024 | 2:44 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Goldman Sachs analyst Ben Miller initiated coverage on DraftKings with a Buy rating and a $60 price target, highlighting the company's strong unit economics, growing profitability, and the expanding sports betting market. DraftKings is expected to see a compounded annual revenue growth of 21% from 2023 to 2028.
The initiation of coverage by Goldman Sachs with a Buy rating and a significant price target suggests a strong bullish outlook for DraftKings, particularly noting the expected revenue growth and the company's position in the growing sports betting market. This endorsement from a major financial institution could lead to increased investor confidence and potential short-term price appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100