© Reuters. DraftKings (DKNG) ‘continues to beat expectations,’ BofA upgrades to buy
DraftKings (NASDAQ:) was upgraded to Buy from Neutral with a new price target of $35, up from $25 per share at BofA on Wednesday.
The firm declared that its “time for the King to take the throne,” noting the company’s accelerating product revenue momentum and the fact the company and online gaming, in general, continue to beat expectations.
“We upgrade DraftKings to Buy from Neutral as accelerating product and revenue momentum are on the cusp of driving an inflection in margins and profitability,” said BofA analysts.
“While DKNG has outperformed in 2023, we think market share gains can drive both Q2 ‘23 and near-term top line revisions (though likely anticipated) while cost leverage will likely drive bigger revisions in Adj. EBITDA and margins than anticipated,” they added.
DraftKing shares are up more than 7% at the time of writing, trading at $31 per share.
