DraftKings Inc (NASDAQ
KNG) is a prominent player in the US online sports betting and gaming industry. Known for its strong brand recognition and innovative technology, DraftKings has carved out a significant market share. The company competes with other major players like FanDuel and BetMGM, leveraging its first-mover advantage to stay ahead.
On February 18, 2025, Needham set a price target of $65 for DraftKings, suggesting a potential upside of 27.58% from its current trading price of $50.95. This optimistic outlook aligns with the positive sentiment from analysts following DraftKings' strong fourth-quarter results and 2025 guidance. The stock's current price is $50.93, reflecting a slight decrease of 4.79% with a change of $2.56.
Macquarie analyst Chad Beynon has maintained an Outperform rating on DraftKings, raising the price target from $50 to $60. Beynon highlighted DraftKings' achievement of a full year of positive adjusted EBITDA and free cash flow, marking significant financial milestones. This performance underscores the company's strong financial health and growth potential.
DraftKings reported a 37% year-over-year growth in monthly unique payers during the fourth quarter, indicating robust customer acquisition and engagement. Beynon noted that the combination of double-digit industry growth, higher hold, and lower promotional activities should further bolster DraftKings' performance. The company's market capitalization is approximately $24.83 billion, with a trading volume of 12.86 million shares on the NASDAQ exchange.
Needham analyst Bernie McTernan reiterated a Buy rating, increasing the price target from $60 to $65. This reflects confidence in DraftKings' future prospects, driven by reduced promotional activities and continued operating leverage. The stock has fluctuated between a low of $50.30 and a high of $53.50 today, with a 52-week high of $53.61 and a low of $28.69.
