Analyst Stephen Grambling of Morgan Stanley maintained a Buy rating on DraftKings (DKNG – Research Report), retaining the price target of $53.00.
Stephen Grambling has given his Buy rating due to a combination of factors including DraftKings’ ability to maintain a strong core business despite some challenges. Although the company’s first-quarter results did not meet Morgan Stanley’s estimates, they were generally in line with market expectations and even surpassed some investor expectations. This indicates a resilient performance amidst external pressures such as regulatory changes and unfavorable outcomes in sports events.
Moreover, DraftKings demonstrated robust handle growth, outperforming competitors like FanDuel, which suggests that the market is not yet saturated. The company’s valuation appears attractive given its projected revenue and EBITDA growth rates, which are expected to be substantial over the coming years. Additionally, the potential for expansion into new jurisdictions provides further upside potential, making the stock a compelling buy despite the current challenges.
According to TipRanks, Grambling is a 4-star analyst with an average return of 4.5% and a 57.31% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Marriott International, DraftKings, and Hyatt Hotels.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $60.00 price target.