DraftKings price target lowered to $60 from $63 at Jefferies

Jefferies analyst David Katz lowered the firm’s price target on DraftKings (DKNG) to $60 from $63 and keeps a Buy rating on the shares. The firm updated the company’s model ahead of the Q1 report to reflect “unfavorable” hold toward the end of the quarter. Jefferies reduced Q1 estimates on March Madness weakness, as it now sees DraftKings Q1 revenue of $1.51B versus $1.65B prior. The analyst reiterates a bullish view on the U.S. gaming sector, particularly given the recent market dislocation and escalating macro concerns elsewhere.