Analysts split on DraftKings: UBS trims price target while Needham holds firm
Several Wall Street analysts have issued fresh ratings on sports betting and iGaming company DraftKings (NASDAQ: DKNG), with UBS Group slightly lowering its price target while most other firms remain bullish on the stock.
New analyst ratings
Investment bank UBS Group cut its price target on DraftKings from $49 to $48 in a research note issued Friday, while maintaining a "buy" rating, according to MarketBeat. The same day, Needham & Company reiterated a "buy" rating with an unchanged $35 price target, as reported by GuruFocus. Other firms have issued mixed views in recent weeks: Weiss Ratings downgraded the stock from "sell (d)" to "sell (e+)," Citigroup restated a "market outperform" rating, Truist Financial set a $29 target, and Deutsche Bank raised its target from $26 to $28 while keeping a neutral "hold" rating. Overall, per MarketBeat data, one analyst has issued a "strong buy," 30 a "buy," eight a "hold" and two a "sell," giving the stock an average "moderate buy" rating with an average price target of $34.36.
Share price and financials
DKNG shares opened around $22.34 on Friday, according to MarketBeat, while GuruFocus cites a price of $22.47. The company's market capitalization stands at roughly $11.1–11.16 billion. In its second-quarter results, reported August 7, DraftKings posted earnings of $0.09 per share, beating the consensus estimate of $0.02, but revenue of $1.44 billion missed the expected $1.51 billion and fell 4.6% year-over-year. The company remains unprofitable overall, with a negative P/E ratio.
Insider activity and valuation
Director Jocelyn Moore sold 10,759 shares on August 19 at an average price of $24.05, worth roughly $258,754 in total — a transaction noted by both GuruFocus and MarketBeat. Insiders currently own 47.18% of the company's stock, while institutional investors hold 37.70%. GuruFocus estimates DraftKings' intrinsic "GF Value" at $52.63, suggesting the stock is currently undervalued by 57.3%, and assigns the company an overall "GF Score" of 68 out of 100, with a notably strong growth score but a weak valuation score.
