Citi raised the firm’s price target on DraftKings (DKNG) to $58 from $55 and keeps a Buy rating on the shares. Quarter-to-date state data suggests DraftKings has seen its hold rate trend higher year-over-year, but the firm still sees scope for the company to lower its 2025 outlook given the updated Missouri online sports betting launch timeline and recent state tax hikes, the analyst tells investors in a Q2 preview. While the firm is lowering its 2025 adjusted EBITDA estimate to the low end of the company’s guidance, it is slightly raising its price target to account for recent market multiple expansion.
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