Benchmark Co. analyst Mike Hickey maintained a Buy rating on DraftKings today and set a price target of $37.00.
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Mike Hickey has given his Buy rating due to a combination of factors that highlight DraftKings’ strong performance in the New York online sports betting market. Notably, DraftKings exhibited a significant year-over-year increase in both handle and revenue during Week 14, with handle growing by 12.6% and revenue rising by 89.9%. This growth was supported by an improved hold percentage, indicating more efficient operations compared to the previous year.
Moreover, on a season-to-date basis through Week 14, DraftKings has consistently outperformed the state average in terms of handle growth, with a 14.7% increase year-over-year. The company’s revenue also saw a substantial rise of 22.0%, driven by a higher hold percentage. These metrics suggest that DraftKings is effectively capturing market share and driving revenue growth, justifying the Buy rating from Mike Hickey.
Hickey covers the Communication Services sector, focusing on stocks such as IMAX, Genius Sports Limited, and Cinemark Holdings. According to TipRanks, Hickey has an average return of 2.5% and a 55.67% success rate on recommended stocks.
In another report released on December 12, Craig-Hallum also maintained a Buy rating on the stock with a $0.00 price target.