Macquarie analyst Chad Beynon has maintained their bullish stance on DKNG stock, giving a Buy rating today.
Chad Beynon has given his Buy rating due to a combination of factors surrounding DraftKings’ financial performance and market position. The company reported a robust first quarter, exceeding expectations with a 5% revenue beat and a significant EBITDA outperformance at $22.4 million compared to the $5 million consensus. This was accompanied by growth in monthly unique players by 21% year-over-year and a 24% increase in average revenue per monthly unique player, indicating effective customer acquisition and retention as well as a successful launch in North Carolina’s online sports betting market.
Furthermore, DraftKings raised its 2024 revenue and EBITDA guidance, reflecting confidence in sustained growth and customer trends. The company’s focus on cost discipline, alongside maintaining approximately 30% market share in a growing industry, underscores its strong execution and transition past the cash-burn phase. Beynon believes that DraftKings’ data analytics strengths will be advantageous not only in their current market but also in adjacent markets, reinforcing the company’s potential for multi-year top-line growth without significant risks. The Outperform rating and $54 target price reflect these analyses, along with the expectation of continued profitability and double-digit revenue growth.
In another report released today, BTIG also assigned a Buy rating to the stock with a $55.00 price target.
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DraftKings (DKNG) Company Description:
DraftKings is a leading gaming and digital sports entertainment company. It offers a wide range of online products, including sports betting (known as “Sportsbook”), online casino games (“iGaming”), and daily fantasy sports (“DFS”). Additionally, it provides retail sportsbook services, media content, and various consumer products. It also designs and develops software for sports betting and casino gaming.
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