Truist lowered the firm’s price target on DraftKings (DKNG) to $43 from $45 and keeps a Buy rating on the shares. After a tough start to NFL, online sports betting sporting outcomes have turned favorable for operators while handle has been very strong despite prediction market cannibalization concerns, the analyst tells investors in a research note. Truist adds however that its reduced price target reflects more conservative hold assumptions, prediction launch costs, UK taxes, etc., and while DraftKings has finally launched its own Prediction Markets offering, there are “multiple and sizable risks along the way”.
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