Needham Reiterates Buy Rating on DraftKings Inc. (DKNG)

Needham analyst Bernie McTernan reiterated a Buy rating and $60.00 price target on DraftKings Inc. (NASDAQ: DKNG).

The analyst commented: "We are updating our DKNG estimates aligning our assumptions with our FLUT initiation. We are modestly lowering our DKNG adj. EBITDA estimates in '25E and '26E, with lower incremental margins more than offsetting higher revenue. We are now below consensus on '25E adj. EBITDA however above on '26E. We expect the strong customer acquisition environment virtually all OSB operators spoke to in 2Q to continue and as a result we model lower incremental margins near-term as the US TAM is likely larger than previously anticipated. We anticipate this will be a theme of the upcoming FLUT investor day."

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 $39.28 yesterday.

You May Also Be Interested In