Barclays Boosts DraftKings Price Target to $51.00, Reiterates Overweight Rating

Barclays has raised its price target for DraftKings (DKNG) from $48 to $51, a 6.25% increase, maintaining an "Overweight" rating. The average one-year target price for DKNG is $53.09, implying a 22.04% upside from the current price of $43.50. The estimated GF Value for DKNG in one year is $60.43, suggesting a 38.92% upside from the current price.

Barclays has increased its price target for DraftKings (DKNG) from $48 to $51, representing a 6.25% increase. The analyst maintains an "Overweight" rating on the stock. According to the latest estimates, the average one-year target price for DKNG is $53.09, implying a 22.04% upside from the current price of $43.50. Additionally, the estimated GF Value for DKNG in one year is $60.43, suggesting a 38.92% upside from the current price [1].

The adjustment comes ahead of the firm's second-quarter performance preview, with Barclays projecting strong results from regional, digital, and Macau operations. However, underperformance in Las Vegas may slightly offset these gains. Despite recent stock rallies, the analyst reassures investors that the group's shares have not yet reached overbought levels.

Wall Street analysts have forecasted an average target price of $52.99 for DKNG, with a high estimate of $75.00 and a low estimate of $36.00. The consensus recommendation from 36 brokerage firms is an "Outperform" status, indicating positive market sentiment. DraftKings reported a strong start to the year, with core value drivers outperforming expectations. The company achieved a 20% year-over-year revenue growth in the first quarter, generating $1.409 billion [2].

DraftKings Inc (DKNG) has a healthy balance sheet with $1.1 billion in cash after repurchasing 3.7 million shares. The company is realizing efficiencies as broader corporate demand softens, particularly in advertising. Live betting has become a significant growth driver, with live handle exceeding 50% of total handle for the first time. However, customer-friendly sport outcomes during March Madness negatively impacted revenue and adjusted EBITDA. The company revised its fiscal year 2025 revenue guidance downward due to unfavorable sport outcomes [2].

References:
[1] https://www.gurufocus.com/news/2986966/draftkings-dkng-barclays-raises-price-target-ahead-of-q2-preview-dkng-stock-news
[2] https://www.gurufocus.com/news/2986969/barclays-adjusts-price-target-for-penn-entertainment-penn-stock-news