J.P. Morgan analyst Daniel Politzer has maintained their bullish stance on DKNG stock, giving a Buy rating on August 4.
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Daniel Politzer has given his Buy rating due to a combination of factors that highlight DraftKings’ strong financial performance and strategic positioning. The company’s second-quarter adjusted EBITDA of $301 million exceeded expectations, reflecting a robust performance in their sports segment. This was driven by favorable sports outcomes and an increase in structural hold, which surpassed the company’s own guidance. Additionally, DraftKings maintained its full-year 2025 EBITDA guidance, demonstrating confidence in its ability to navigate upcoming challenges such as the Missouri launch and tax headwinds.
Moreover, DraftKings is exploring new opportunities to enhance shareholder value, such as the potential launch of Prediction Markets, which is not yet included in their guidance. The company also repurchased 2.8 million shares, indicating a strong commitment to returning value to shareholders. With solid flow-through rates and reiterated long-term EBITDA margins, DraftKings is well-positioned for continued growth, supporting Daniel Politzer’s Buy rating.