Jefferies cuts DraftKings target, says share decline should be ending

Jefferies analyst David Katz lowered the firm’s price target on DraftKings (DKNG) to $46 from $50 and keeps a Buy rating on the shares. The firm says the decline in both the company’s estimates and shares “should be at an end.” DraftKings’ guidance is conservative and includes “the brunt” of its predictions launch costs without any revenue, ESPN Bet development and the launch of new states, the analyst tells investors in a research note. Jefferies believes demand for U..S sports wagering is not decelerating and that DraftKings “should remain a leader.”