DraftKings price target lowered to $42 from $50 at BMO Capital

BMO Capital analyst Brian Pitz lowered the firm’s price target on DraftKings (DKNG) to $42 from $50 and keeps an Outperform rating on the shares. The company’s 2026 guidance was 8% and 20% below revenue and EBITDA estimates at the midpoint respectively, which is discouraging, even as DraftKings says prediction markets are having a “de minimis” impact on its business, the analyst tells investors in a research note. A softer January handle will continue to stoke prediction market fears as the company fully leans into its DraftKings Prediction opportunity, the firm adds.