{"id":194,"date":"2021-05-17T15:50:19","date_gmt":"2021-05-17T12:50:19","guid":{"rendered":"https:\/\/xxbet-company.com\/draftkings-drilled-as-trio-of-analysts-lower-price-targets\/"},"modified":"2021-05-17T15:50:19","modified_gmt":"2021-05-17T12:50:19","slug":"draftkings-drilled-as-trio-of-analysts-lower-price-targets","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/nb\/draftkings-drilled-as-trio-of-analysts-lower-price-targets\/","title":{"rendered":"DraftKings Drilled, as Trio of Analysts Lower Price Targets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Innholdsfortegnelse<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/nb\/draftkings-drilled-as-trio-of-analysts-lower-price-targets\/#Lack_of_Profitability_Catching_Up_with_DraftKings_Stock\" title=\"Lack of Profitability Catching Up with DraftKings Stock\">Lack of Profitability Catching Up with DraftKings Stock<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/nb\/draftkings-drilled-as-trio-of-analysts-lower-price-targets\/#In_Defense_of_DraftKings\" title=\"In Defense of DraftKings\">In Defense of DraftKings<\/a><\/li><\/ul><\/nav><\/div>\n<p>DraftKings (NASDAQ:DKNG) stock is extending what\u2019s now a precipitous decline, as at least three analysts today trimmed price forecasts on the sportsbook operator.<\/p>\n<figure aria-describedby=\"caption-attachment-173159\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-173159 lazyload\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-142x107.jpg?x38396\" data-src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-142x107.jpg?x38396\" alt=\"DraftKings price target\" width=\"1200\" height=\"900\" data-srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-142x107.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-1024x768.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-768x576.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-1536x1152.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1.jpg 1661w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" data- title=\"\"><img loading=\"lazy\" class=\"wp-image-173159\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-142x107.jpg?x38396\" alt=\"DraftKings price target\" width=\"1200\" height=\"900\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-142x107.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-1024x768.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-768x576.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1-1536x1152.jpg 1536w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/05\/DKNG-1.jpg 1661w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" title=\"\"><figcaption class=\"text-description\">The opening of the DraftKings sportsbook at Del Lago Casino in New York. The stock is sliding today as three analysts reduce price targets. (Image: <em>Auburnpub.com<\/em>)<\/figcaption><\/figure>\n<p>In early trading Monday, shares of the daily fantasy sports (DFS) provider are off more than six percent after stumbling 14.54 percent last week and 20.77 percent over the past month. DraftKings is off 38 percent from its 52-week high notched in March, and all that bloodletting appears to be inspiring analysts to lower price estimates on the name.<\/p>\n<p>Morgan Stanley analyst Thomas Allen cut his DraftKings price target to $63 from $66, but reiterated an \u201coutperform\u201d rating on the stock while offering up some bullish comments.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>Revenue significantly outperformed our expectations, and 2021 revenue guidance was well ahead (again), but management guided to greater earnings before interest, taxes, depreciation and amortization (EBITDA) losses this year and will issue substantially more stock-based comp than we expected,\u201d said Allen.<\/p>\n<\/blockquote>\n<p>Last week, Boston-based DraftKings reported a narrower-than-expected first-quarter loss on revenue that beat the consensus forecast while <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-extends-slide-despite-q1-beat-upped-guidance\/\" rel=\"nofollow noopener\" target=\"_blank\">boosting its 2021 revenue guidance<\/a>.<\/p>\n<p>Allen sees DraftKings commanding 25 percent of the sports betting market and 18 percent of the iGaming segment. His $63 target is a base case scenario and in an extreme bear case, the stock could plunge to $11. However, his bull case forecast is $182 \u2014 nearly quadruple where the shares reside today.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lack_of_Profitability_Catching_Up_with_DraftKings_Stock\"><\/span>Lack of Profitability Catching Up with DraftKings Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>DraftKings became a standalone public company in April 2020, and in that time, there have been lingering concerns about the operator\u2019s customer acquisition costs and runway to profitability.<\/p>\n<div class=\"callout\">\n<p>The most optimistic forecasts indicate the gaming company will cease losing money sometime in 2022. But some analysts believe the EBITDA losses won\u2019t stop until the following year. Needham analyst Bernie McTernan cut his price estimate on DraftKings to $73 from $81 <a href=\"https:\/\/www.casino.org\/news\/draftkings-teaming-up-with-meadowlark-accesses-le-batard-podcasts\/\" rel=\"nofollow noopener\" target=\"_blank\">just two weeks<\/a> after his original forecast was revealed.<\/p>\n<\/div>\n<p>He cited widening EBITDA losses and the broader market\u2019s preference for value stocks over growth fare as the reason for the reduction. But he still rates DraftKings a \u201cbuy\u201d and is enthusiastic on the company\u2019s plans to integrate social media into its sports betting platform, which could create an enviable network effect.<\/p>\n<p>Craig-Hallum analyst Ryan Sigdahl pared his target on DraftKings stock to $60 from $70. He still rates the name a \u201cbuy\u201d and says \u201caggressive\u201d spending will pay off over the long term, as the operator emerges as one of the leaders in a market likely to be dominated by a small number of players.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_Defense_of_DraftKings\"><\/span>In Defense of DraftKings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some analysts are sticking by the beleaguered gaming equity. Cowen <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-has-recipe-for-upside-says-cowen-analyst\/\" rel=\"nofollow noopener\" target=\"_blank\">analyst Stephen Glagola<\/a> raised revenue estimates on DraftKings while noting the company\u2019s guidance for the second half of this year could prove conservative.<\/p>\n<p><strong>Canaccord Genuity\u2019s Michael Graham also raised revenue estimates while maintaining an $80 forecast on DraftKings.<\/strong><\/p>\n<p>\u201cWe are encouraged by the favorable industry backdrop, as online sports betting legalization progress has accelerated across the country, and numerous recent strategic partnerships and acquisitions are helping DraftKings develop its media strategy and enhance its product offering,\u201d said the analyst in a note to clients.<\/p>\n<p>\u201cDespite a competitive market, these factors give us confidence that significant top-line growth will persist as the US embraces online sports betting,\u201d the note continued.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-hammered-as-three-analysts-cut-price-targets\/\" target=\"_blank\">DraftKings Drilled, as Trio of Analysts Lower Price Targets<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>DraftKings (NASDAQ:DKNG) stock is extending what\u2019s now a precipitous decline, as at least three analysts today trimmed price forecasts on the sportsbook operator. The opening of the DraftKings sportsbook at Del Lago Casino in New York. The stock is sliding today as three analysts reduce price targets. (Image: Auburnpub.com) In early trading Monday, shares of <a href=\"https:\/\/xxbet-company.com\/nb\/draftkings-drilled-as-trio-of-analysts-lower-price-targets\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/194"}],"collection":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/comments?post=194"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/posts\/194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media\/195"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/media?parent=194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/categories?post=194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/nb\/wp-json\/wp\/v2\/tags?post=194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}