DraftKings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Steven Sheeckutz from Citi maintained a Buy rating on the stock and has a $48.00 price target.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Steven Sheeckutz has given his Buy rating due to a combination of factors that highlight DraftKings’ improving fundamentals despite near‑term guidance disappointment. He notes that fourth‑quarter revenue essentially matched market expectations while adjusted EBITDA materially exceeded both his and the Street’s forecasts, underscoring operating leverage, disciplined marketing spend, and resilient customer engagement even as monthly unique payers were roughly flat.
At the same time, Sheeckutz emphasizes that the company’s strong jump in average revenue per payer and solid sportsbook and iGaming margins support a constructive long‑term earnings trajectory, which the market may be underappreciating after the below‑consensus 2026 outlook. In his view, the pullback following cautious guidance creates an attractive entry point, as the projected multi‑year ramp in revenue and profitability, coupled with an expected share price return approaching 90%, justifies maintaining a Buy recommendation on DKNG shares.
According to TipRanks, Sheeckutz is an analyst with an average return of -4.8% and a 39.13% success rate.
In another report released today, Needham also maintained a Buy rating on the stock with a $52.00 price target.