DraftKings Stock Pushing Higher on Another Upgrade

FILE PHOTO: Jason Robins, CEO of DraftKings, is displayed at the Nasdaq MarketSite jumbotron, in New York City

Shares of DraftKings (DKNG) have been hot.

Since the Jan. opener, the betting stock raced from about $11 to $26.22.  And some analysts say it could see even more upside from here. In fact, if it can break above $27.60, it could test $30 shortly after.

For one, the company recently posted a Q1 revenue of $769.65 million, which was higher than expectations for $704.3 million.  It was also well above the $417.21 million posted a year earlier. DKNG also posted an adjusted loss of 51 cents, which was narrower than expectations for an adjusted loss of 70 cents. Even better, Needham analysts have a buy rating, with a $28 price target, noting, “We think the legislative environment is overall supportive of greater market access as it’s a win-win for consumers and states.”

Then, just today, UBS upgraded the DKNG stock to a buy rating, with a price target of $30 from $19. The firm also increased its 2023 revenue estimate to $3.19 billion from $2.91 billion. It also raised 2024 and 2025 revenue estimates to $3.94 billion and $4.81 billion, respectively, from $3.57 billion and $4.24 billion.

DKNG last traded at $26.22 on a volume spike to 21.1 million shares, as compared to daily average volume of 11.44 million.