- DraftKings' Q1 revenue surged 19.5% to $1.41 billion, but adjusted EBITDA fell short of expectations.
- Analysts' average price target suggests a potential upside of over 53% from current levels.
- GuruFocus estimates a GF Value for DraftKings, indicating a substantial upside.
DraftKings Inc. (DKNG, Financial) experienced a notable uptick in its stock price following the announcement of a robust 19.5% year-over-year increase in first-quarter revenue, which reached $1.41 billion. This growth was primarily fueled by strategic customer engagement efforts and successful acquisitions. However, despite these impressive revenue figures, the company's adjusted EBITDA, reported at $102.6 million, fell short of market expectations. Consequently, DraftKings adjusted its full-year 2025 revenue guidance to a range of $6.2 billion to $6.4 billion.
Wall Street Analysts Forecast
According to the projections provided by 33 industry analysts, DraftKings Inc. (DKNG, Financial) is anticipated to reach an average price target of $54.17 over the next year. This prediction is accompanied by a high estimate of $75.00 and a low estimate of $35.00. If realized, these targets imply a potential upside of 53.24% from the current trading price of $35.35. For more in-depth forecast data, you can visit the DraftKings Inc (DKNG) Forecast page.
Additionally, the consensus recommendation among 33 brokerage firms positions DraftKings Inc. (DKNG, Financial) at an average recommendation of 1.8, categorizing it under "Outperform." This rating scale ranges between 1, indicating a Strong Buy, and 5, indicating a Sell.
GuruFocus Valuation Insights
Through the lens of GuruFocus' analytics, the estimated GF Value for DraftKings Inc. (DKNG, Financial) over the coming year is projected at $60.92. This valuation suggests a considerable upside of 72.33% from the current market price of $35.35. The GF Value metric represents GuruFocus’ internal assessment of what the fair trading value of the stock should be, calculated through historical trading multiples, past business growth, and future performance forecasts. Investors seeking more extensive insights can explore the DraftKings Inc (DKNG) Summary page.
