DraftKings price target lowered to $51 from $54 at Jefferies

Jefferies lowered the firm’s price target on DraftKings (DKNG) to $51 from $54 and keeps a Buy rating on the shares, while removing the stock from the firm’s “Franchise Pick” list. The firm updated the company’s model to reflect the “unfavorable” trends in Q3 of low September hold and elevated promotional spend. These equate to a $150M headwind to DraftKings’ adjusted EBITDA in the quarter, the analyst tells investors. Jefferies believes that while the pushing out of earnings is challenging for shares in the near term, the company’s longer term earnings power remains.