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.