Analyst Mike Hickey of Benchmark Co. maintained a Buy rating on DraftKings, retaining the price target of $37.00.
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Mike Hickey’s rating is based on DraftKings’ strong performance in the New York market, where it has shown significant growth in betting volume. The company has achieved a notable year-over-year increase in handle, outpacing both the state average and its main competitor, FanDuel. Despite a slight decline in hold percentage, DraftKings’ ability to drive higher betting volumes supports its revenue growth.
Additionally, the overall market dynamics in New York, characterized by a balance between DraftKings’ volume growth and FanDuel’s margin strength, create a favorable environment for DraftKings. This combination of factors suggests that DraftKings is well-positioned to capitalize on market opportunities, justifying a Buy rating from Mike Hickey.
According to TipRanks, Hickey is a 3-star analyst with an average return of 0.9% and a 53.44% success rate. Hickey covers the Communication Services sector, focusing on stocks such as Genius Sports Limited, Electronic Arts, and IMAX.
In another report released on November 26, Barclays also maintained a Buy rating on the stock with a $40.00 price target.