DraftKings (DKNG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on February 14. Analyst Daniel Politzer from Wells Fargo reiterated a Buy rating on the stock and has a $60.00 price target.
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Daniel Politzer has given his Buy rating due to a combination of factors stemming from DraftKings’ recent performance and future outlook. DraftKings’ 4Q results and FY25 guidance were largely as expected, yet the new disclosures and a positive start to Q1 suggest that the company might not only meet but potentially exceed its current guidance. This optimism is reinforced by the company’s ability to achieve positive EBITDA and the likelihood of returning to a pattern of outperforming expectations.
Furthermore, the strategic insights from their new sports and iGaming disclosures have provided investors with greater confidence in DraftKings’ ability to maintain its market position and achieve its financial targets. Politzer believes that DraftKings is exercising caution in its guidance, which could imply conservative estimates that might lead to upward revisions as the year progresses. Additionally, the company is seen as a leader in the growing US digital gaming market, and there is potential for further upside as the industry evolves. Overall, these factors underpin Politzer’s optimistic outlook and the Buy rating for DraftKings.
Politzer covers the Consumer Cyclical sector, focusing on stocks such as Wyndham Hotels & Resorts, Choice Hotels, and Las Vegas Sands. According to TipRanks, Politzer has an average return of 11.1% and a 54.11% success rate on recommended stocks.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $65.00 price target.