DraftKings price target raised at several Wall Street firms, shares gain

DraftKings (NASDAQ:) shares gained more than 2% today after three Wall Street firms raised their price targets on the company.

Guggenheim raised its price target to $36.00 from $32.00 while maintaining a Buy rating and updating its revenue and EBITDA estimates ahead of the upcoming Q2/23 earnings, scheduled on Aug 4.

The firm estimates Q2 revenue at $757 million (up from $722M) and EBITDA at $17M (up from $7M) based on an improved product mix, robust Q2 app download and MAU data, ongoing cost management, and effective customer retention in iGaming and OSB.

JMP Securities raised the price target on the company to $33.00 from $31.00 while maintaining a Market Outperform rating, highlighting that the results from online gaming in Q2 were incrementally positive, bolstered by improvement in industry hold, a steady iGaming sector, and low promotional spend.

The firm anticipates robust Q2 revenue growth, with a 55% year-over-year increase in U.S. sports betting revenue and a 21% increase in iGaming.

BTIG raised the price target to $34.00 from $31.00 while maintaining a Buy rating.

The firm adjusted its estimates to reflect strong GGR reports and a late September Kentucky sports betting launch. They expect Q2 revenue of $819M, compared to the consensus estimate of $716.85M.