- DraftKings (DKNG, Financial) breaks its six-day winning streak with a minor dip, yet shows a promising year-to-date gain.
- Wall Street analysts remain bullish, forecasting significant upside potential for DKNG shares.
- The recent implementation of consumer transaction fees poses potential risks due to increased state taxes.
DraftKings (DKNG) experienced a slight decline of 0.16%, settling at $42.74 and ending a six-day streak of gains. Notwithstanding this minor setback, the company's shares have surged over 15% since the beginning of the year, surpassing the S&P 500's modest 4% rise. Although Seeking Alpha has rated DKNG as a Hold, citing valuation concerns, Wall Street analysts exhibit more optimism, with 28 out of them assigning a Strong Buy rating. However, the introduction of new consumer transaction fees in response to heightened taxes on online bets in Illinois and New Jersey has sparked some criticism, as it could present downside risks.
Wall Street Forecasts for DraftKings
According to projections from 33 analysts, DraftKings Inc (DKNG, Financial) has a one-year average target price of $53.06, with estimates ranging from a high of $75.00 to a low of $36.00. This average target suggests a potential upside of 24.13% from the current price of $42.74. Investors looking for more detailed estimates can consult the DraftKings Inc (DKNG) Forecast page.
The consensus among 35 brokerage firms places DraftKings Inc's (DKNG, Financial) average brokerage recommendation at 1.9, indicating an "Outperform" status. This rating is based on a scale from 1 to 5, where 1 reflects a Strong Buy and 5 indicates a Sell.
GuruFocus' proprietary metrics estimate the GF Value for DraftKings Inc (DKNG, Financial) in one year to be $59.56, which suggests a promising upside of 39.35% from the current price of $42.74. The GF Value represents the fair trading value of the stock, calculated using historical trading multiples, past business growth, and future performance estimates. Detailed data regarding DraftKings can be accessed on the DraftKings Inc (DKNG) Summary page.
