DraftKings (DKNG) received multiple bullish endorsements from Wall Street analysts, who raised their price targets following the sports betting giant’s robust fourth-quarter performance last week. The company’s stronger-than-expected earnings results have bolstered confidence in its growth trajectory among analysts. DKNG stock surged more than 25% in the last five days, with a 15% gain following its Q4 results.
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Stifel Raises Target but Drops Elite Status
Stifel’s gaming and leisure sector analyst Jeffrey Stantial has raised his price target on DKNG stock from $48 to $57 while maintaining his Buy rating.
Stantial attributes the stock’s post-earnings rally to accelerating performance in the current quarter and a modest upward revision to the company’s FY25 revenue guidance. These positive indicators gained additional momentum due to the market’s initially conservative positioning ahead of the earnings release.
However, in a strategic shift, Stifel removed DraftKings from its “Select List.” The firm suggests that the recent sharp appreciation in share price might present more attractive entry points for investors in the future. Notably, Stifel’s “Select List” represents the firm’s highest-conviction stock picks, chosen for their superior risk-adjusted return potential over a 12-month horizon.
Multiple Analysts Boost Price Targets on DKNG
Following the results, Steven Sheeckutz from Citi boosted his price target by $6 to $65, predicting an upside of 22%. Sheeckutz is bullish on DraftKings, citing its strong start to 2025, with January and February performance exceeding expectations. He also highlighted DraftKings’ focus on expanding its live betting offerings, which could drive growth as the U.S. market matures.
Similarly, five-star-rated analyst Michael Graham at Canaccord Genuity highlighted the company’s first full year of positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and free cash flow. Graham raised his price target from $54 to $60, forecasting a growth rate of 12%.
Is DraftKings a Good Stock to Buy?
On TipRanks, DKNG stock has a Strong Buy consensus rating based on 24 Buys and three Holds assigned in the last three months. The average DraftKings share price target implies a 4% upside potential from current levels.
