Is DraftKings Stock A Buy After Illinois Gambling Tax Hike?
Portfolio Pulse from Surbhi Jain
DraftKings Inc (NASDAQ:DKNG) shares are trading lower after the Illinois State Senate approved a significant sports betting tax hike, which will more than double the current tax rate. Despite the bearish technical indicators, analysts maintain a bullish outlook with a consensus Buy rating and a price target suggesting a potential upside of 56.49%.
May 29, 2024 | 7:50 pm
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DraftKings Inc (NASDAQ:DKNG) is experiencing selling pressure after the Illinois State Senate approved a significant sports betting tax hike. The new tax rate will more than double, increasing from around 15% to the mid-to-high 30% range. Despite bearish technical indicators, analysts maintain a bullish outlook with a consensus Buy rating and a price target suggesting a potential upside of 56.49%.
The significant tax hike in Illinois is expected to negatively impact DraftKings' financials in the short term, leading to selling pressure. However, the long-term bullish outlook from analysts suggests potential for future growth, creating a mixed sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100