DraftKings price target lowered to $50 from $54 at Citizens JMP

Citizens JMP lowered the firm’s price target on DraftKings (DKNG) to $50 from $54 and keeps an Outperform rating on the shares. The Illinois tax change over the weekend was “another domino to fall,” representing the third state to adjust its gaming framework this year, while Colorado, Maryland, and Illinois are in the model now, representing a gross EBITDA headwind of more than $100M for DraftKings, the analyst tells investors in a research note. With four states’ legislative sessions ongoing, Citizens believes the volatility and negative headlines could potentially continue in the coming months.