Mike Hickey, an analyst from Benchmark Co., maintained the Buy rating on DraftKings. The associated price target remains the same with $37.00.
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Mike Hickey has given his Buy rating due to a combination of factors including DraftKings’ strong performance in the New York market during NFL Week 10. The company experienced a significant increase in total handle, rising by 30.5%, and a notable growth in gross gaming revenue (GGR) by 22.1%, despite a slight decline in hold percentage. This performance indicates a robust market presence and resilience against potential competition from prediction markets, which are expanding in unregulated states.
Furthermore, the season-to-date metrics through Week 10 also support the Buy rating, with DraftKings showing balanced growth in both handle and revenue. The company’s handle increased by 15.2% and GGR by 14.4%, maintaining a competitive hold percentage. These positive trends suggest that DraftKings is well-positioned in the market, with limited impact from emerging prediction markets, reinforcing the confidence in its continued growth potential.
Hickey covers the Communication Services sector, focusing on stocks such as Genius Sports Limited, Electronic Arts, and IMAX. According to TipRanks, Hickey has an average return of 2.1% and a 54.95% success rate on recommended stocks.
In another report released on November 13, Mizuho Securities also maintained a Buy rating on the stock with a $46.00 price target.