CFRA Upgrade Boosts DraftKings Stock Rating to Buy, Price Target Adjusted to $52

CFRA analyst Zachary Warring has upgraded DraftKings Inc. from 'Hold' to 'Buy' and adjusted the price target to $52, citing a potential upside of 51.1% due to the stock's recent decline of over 30% post-Q4 earnings. The analysis highlights DraftKings' anticipated 30% growth by 2025 and improved profitability as the company reduces marketing expenses. With DraftKings and FanDuel dominating the mobile sports betting market and expected to maintain over 80% market share, Warring notes that DraftKings is positioned as a defensive investment, less exposed to travel-related downturns compared to traditional casinos. The stock is currently trading at 2.8 times projected sales for the upcoming year, presenting an attractive entry point for investors. Wall Street analysts maintain a consensus 'Outperform' recommendation, reflecting confidence in the company's growth prospects. Overall, DraftKings is seen as well-placed for future profitability amid a competitive landscape.