Analyst Bernie McTernan of Needham maintained a Buy rating on DraftKings, retaining the price target of $60.00.
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Bernie McTernan has given his Buy rating due to a combination of factors that highlight DraftKings’ strong financial performance and favorable market conditions. The company experienced better-than-expected sports outcomes, which significantly boosted their quarterly results. This positive impact was substantial enough to counterbalance the challenges posed by increased state taxes and the launch of the Missouri online sports betting market.
Furthermore, McTernan points out the robust unit economics of DraftKings, as evidenced by their impressive adjusted EBITDA margins of 20%. Additionally, there was a year-over-year decline in promotional spending both in absolute terms and as a percentage of handle, indicating efficient cost management. These elements collectively suggest a promising outlook for DraftKings, justifying the Buy rating.
According to TipRanks, McTernan is a 4-star analyst with an average return of 7.8% and a 51.70% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Super Group (SGHC), Flutter Entertainment PLC, and DraftKings.