Truist Securities Lowers DraftKings Price Target Following Prediction Market Expansion
Truist Securities adjusted its price target for DraftKings Inc. (NASDAQ: DKNG) to $43.00 USD from $45.00 on Dec 22, 2024.
The firm maintained its Buy rating but cited increased costs from the company expansion into prediction markets. DraftKings launched its app in 38 states.
The prediction application is now available in states including California, Florida, Georgia, and Texas. FanDuel is expected to roll out a similar offering shortly.
Truist reduced 2026 EBITDA estimates by 22% to $940 million USD. The 2027 EBITDA forecast fell 18% to $1.60 billion.
The revisions reflect incremental costs from ESPN and NBC launches and conservative assumptions for betting handle. Fourth-quarter EBITDA remains at $500 million.
Regulatory clarity could help DraftKings and Flutter Entertainment outperform, despite unresolved legal challenges and a potential Supreme Court ruling. See the DKNG report.
Further details on operations are in the DKNG, DKNG, and DKNG blogs.
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