DraftKings Analyst Cautious On Q2, But Optimistic About NFL Season: 'Well-Positioned To Execute' In Second Half Of Year
Portfolio Pulse from Chris Katje
An analyst from Bank of America has reiterated a Buy rating on DraftKings (NASDAQ:DKNG) but lowered the price target from $54 to $50, citing potential challenges in Q2 earnings. Despite this, the analyst remains optimistic about DraftKings' performance in the second half of the year, particularly during the NFL season. DraftKings' competitor, FanDuel, is also mentioned as having a larger market share in online sports betting.
July 22, 2024 | 8:57 pm
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FanDuel, a unit of Flutter Entertainment, is mentioned as a key competitor to DraftKings with a larger market share in online sports betting. The analyst believes FanDuel could have improved in Q2 due to NBA betting strength.
FanDuel's larger market share and potential improvement in Q2 due to NBA betting strength could positively impact Flutter Entertainment's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Bank of America analyst Shaun C. Kelley reiterated a Buy rating on DraftKings but lowered the price target from $54 to $50. The analyst expects a challenging Q2 earnings report but remains optimistic about the company's performance in the second half of the year, especially during the NFL season.
The analyst's cautious stance on Q2 earnings and the lowered price target could create short-term pressure on DKNG's stock price. However, the optimism for the NFL season and the second half of the year may balance this out, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100