DraftKings’ Hold, Increasing Consistency Lauded by Analysts

On the back of improving cost management and above-average hold in some markets, DraftKings (NASDAQ: DKNG) drew kudos from a pair of sell-side analysts on Thursday.
In reports to clients on Thursday,
Deutsche Bank analyst Carlo Santarelli and JPMorgan’s Joseph Greff waxed modestly bullish on Draftkings, with Santarelli lifting his price target on the stock to $24 from $22. Greff upped his price objective on the name to $20. Both are below Thursday’s closing price of $25.23. Citing better-than-expected iGaming metrics, Santarelli lifted his 2023 and 2024 revenue projections on DraftKings.

While the gaming company has made reducing costs a core focus this year, the Deutsche Bank analyst sees the operator benefiting from increased hold.

 

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DraftKings has received positive feedback from analysts at Deutsche Bank and JPMorgan, with both analysts raising their stock price targets. Deutsche Bank's Carlo Santarelli increased his target to $24, while JPMorgan’s Joseph Greff set his at $20. Both analysts cited better-than-expected iGaming metrics and improved cost management as key drivers for DraftKings’ performance. Santarelli also revised his revenue projections for 2023 and 2024 upward, acknowledging the company’s focus on cost reduction and increased hold in certain markets.