DraftKings Stock Takes a Hit, But Analysts Remain Bullish
DraftKings Inc, the daily fantasy sports contest and sports betting behemoth, is facing a slight decline in its stock price, but don’t count it out just yet. The company’s stock price target was recently lowered to $53 by Jefferies, citing tax headwinds as a major concern. However, Bernstein is not having it, reaffirming its Buy Rating on DraftKings and touting the company’s live betting and Jackpocket synergies as major positives.
The numbers don’t lie: US sportsbook leaders Flutter and DraftKings are both posting double-digit growth guidance, a clear indication that the company’s growth prospects remain strong. But with great power comes great responsibility, and DraftKings is facing some serious heat from the law. Class action lawsuits have been filed against the company in California, alleging that its daily fantasy sports contests constitute nothing short of illegal gambling.
Here are the key takeaways:
- Jefferies lowers DraftKings stock price target to $53 due to tax headwinds
- Bernstein reaffirms Buy Rating on DraftKings, citing live betting and Jackpocket synergies
- US sportsbook leaders Flutter and DraftKings post double-digit growth guidance
- Class action lawsuits filed against DraftKings in California, alleging illegal gambling
It’s clear that DraftKings is not without its challenges, but the company’s growth prospects remain strong. Will it be able to navigate the treacherous waters of the sports betting industry and come out on top? Only time will tell, but one thing is certain: DraftKings is not going down without a fight.