DraftKings downgraded at MoffettNathanson amid prediction markets ‘clouds’

As previously reported, MoffettNathanson downgraded DraftKings (DKNG) to Neutral from Buy with a price target of $27, down from $38. While admitting “we are very late to downgrading DKNG and FLUT at this point” as the stocks have sold off from the highs of last year and taken another material step down so far this year,” the firm says that its core belief that the valuation of both companies is attractive, even on conservative longer-term forecasts, is “no longer enough to maintain our Buy recommendations.” The firm no longer sees “the clouds lifting on these stocks until there is some regulatory clarity on prediction markets,” the analyst added.