DraftKings shares are hovering near their 52-week lows while Wall Street analysts continue to assess the company’s financial trajectory amid a strong start to the NFL season. Stantial analyst Jeffrey Stantial reaffirmed a buy rating and a $36.00 price target on DraftKings stock, trading around $21.16 against a 52-week low of $20.35, following reports of a 15% year-over-year increase in online sportsbook handle during the first two weeks of professional football.
Stifel Reaffirms Buy Rating as NFL Handle Climbs
The recent uptick in betting volume mirrors DraftKings’ broader 15% annual revenue growth over the past 12 months, supported by a 76% gross profit margin. During a competitor conference, company leadership outlined that the 15% handle growth excludes predictive market products. While firm executives cautioned against over-interpreting a two-week sample size, they noted that underlying performance trends have strengthened compared to pre-World Cup periods.
DraftKings attributed the momentum to several factors, including the retention and cross-selling of users acquired during the World Cup, more engaging NFL content, and a broader marketing halo effect driven by promotional spending that raised consumer awareness. Notably, this handle growth materialized even as overall promotional investments declined year-over-year, with the company opting not to repeat its “Ghost Leg” promotion from previous cycles.
Diverging Wall Street Price Targets and Estimates
UBS reviewed the company’s second-quarter financial figures and lowered its price target slightly from $49 to $48 while maintaining a buy rating. Despite ongoing debates regarding hold rates and promotional expenses, DraftKings reaffirmed its fiscal year 2026 revenue projections between 65억 달러 and 69억 달러, alongside an adjusted EBITDA guidance range of 7억 달러 to 9억 달러.
Citizens adjusted its price target from $37.00 to $35.00 while keeping a market outperform rating, following executive commentary regarding sports betting handle expansion and growth in prediction market volume. Separately, StoneX maintained a buy rating with a $30.00 price target, pointing to increased investments in DraftKings’ Predictions product.
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