Benchmark Reiterates Buy Rating on DraftKings Inc. (DKNG)

Benchmark analyst Mike Hickey reiterated a Buy rating and $51.00 price target on DraftKings Inc. (NASDAQ: DKNG).

The analyst commented, “Despite concerns about a deceleration in handle growth during Q4 2024, Q1 2025 has shown a strong re-acceleration, particularly in NBA betting volume. Management attributes this to an increase in NBA viewership and broader engagement in sports following the U.S. election cycle. The Super Bowl was a key event, driving exceptional customer acquisition and handle growth, and March Madness is expected to further sustain momentum.”

Also, “Hold rate improvements have exceeded expectations, largely driven by a shift in bet mix. Same Game Parlays have experienced a 500-600- bps YoY increase in contribution, particularly within the NFL and NBA, where playercentric betting is more prevalent. The company has not observed a significant correlation between higher hold rates and declining handle, suggesting that bettors continue to engage at similar or higher levels despite improved margin capture.”

For an analyst ratings summary and ratings history on DraftKings Inc. click here. For more ratings news on DraftKings Inc. click here.

Shares of DraftKings Inc. closed at $39.41 yesterday.

You May Also Be Interested In