Bank of America Securities analyst Shaun Kelley has reiterated their bullish stance on DKNG stock, giving a Buy rating today.
Shaun Kelley has given his Buy rating due to a combination of factors that highlight DraftKings’ strong position in the digital gaming industry. Despite some challenges in the first quarter, such as lower hold in March and the impact of Texas shutting down Jackpocket, Kelley believes that DraftKings’ overall outlook remains positive. The company is expected to maintain its online sports betting and iGaming outlook for the full year, with a strong performance during the Super Bowl offsetting weaker results from March Madness.
Additionally, DraftKings’ guidance for 2025 does not yet account for potential revenue from the launch of online sports betting in Missouri or the impact of potential tax rate increases. While these factors could present headwinds, Kelley maintains confidence in DraftKings’ ability to navigate these challenges. The company’s leadership in the digital gaming space and its potential for handle growth contribute to the Buy rating, with a price objective set at $60.00 USD, significantly higher than the current trading price.
According to TipRanks, Kelley is a 2-star analyst with an average return of 0.0% and a 45.57% success rate. Kelley covers the Consumer Cyclical sector, focusing on stocks such as Vail Resorts, DraftKings, and Penn National Gaming.
In another report released today, Barclays also maintained a Buy rating on the stock with a $50.00 price target.