DraftKings likely to follow Flutter into prediction market, says Jefferies

Jefferies keeps a Buy rating on DraftKings (DKNG) (DNKG) with a $54 price target after its competitor Flutter Entertainment (FLUT) announced a partnership with CME Group (CME). Industry sources says Flutters’ partnership with CME Group is well thought out, with the company avoiding the need to acquire a “costly” designated contract market and legal conflicts of Kalshi, the analyst tells investors in a research note. Jefferies believes DraftKings is likely to follow Flutter’s lead into the space but could take a different route if it acquires Railbird. Despite the “potential allure” of prediction markets, the firm still has reservations about the space for now, citing the potential impact its state regulator relations.