Research Alert: CFRA Raises Opinion On Shares Of Draftkings Inc. To Buy From Hold

, MT Newswires -  1:20 PM ET 4/14/2025 Investing Ideas

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01:20 PM EDT, 04/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $1 to $52, based on 4.0x our 2025 revenue estimate and in between the company's three- and five-year average forward price-to-sale ratio. We maintain our 2025 and 2026 EPS estimates of $0.50 and $0.75, respectively. DKNG shares have fallen over 30% since it released its Q4 earnings, which we believe provides a great entry point for shares. Shares are trading at 2.8x next-12-month (NTM) sales and well below its three- and five-year average. DraftKings ( DKNG ) and FanDuel are the two winners in mobile sports betting in the U.S., and we expect the two to maintain over 80% market share. We see DKNG growing 30% in 2025 and becoming more profitable as the company pulls back on marketing expenses. DKNG has no exposure to travel, unlike the large legacy Casinos, and should hold up better in a consumer slowdown. We upgrade shares and believe DKNG can be a defensive play within the Casinos and Gaming sub-industry.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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