DraftKings (NASDAQ:DKNG) held its investor day event on Tuesday, with the company revealing new 2025, 2026, and 2028 adjusted EBITDA and FCF guidance.
Here's how analysts reacted:
Barclays analysts described the updates as "solid" but mostly in line with elevated expectations.
The investment bank, which maintained an Equal-Weight rating and raised its price target for the stock to $36 from $35, said that based on company assumptions for future combined market share and "not-overly-aggressive commentary around future hold lift," they think long-term guidance "still bakes in a healthy level of conservatism."
They added that they would wait for a more attractive entry point on the stock as sentiment remains at the highs.
Morgan Stanley's analysts said the investor day confirms their bull case on the stock. The investment bank, which has an Overweight rating and a $38 price target on the stock, said DKNG shares still has upside.
"DKNG's Investor Day outlined EBITDA targets above consensus, with details affirming our more positive view. Importantly, the outlook was built off of several assumptions that could prove conservative or provide flexibility to reinvest," they wrote.
Citi analysts, reacting to DKNG's pre-release of the slides, said they view the release positively.
"Within the release, the firm pointed to reaching ~$30 billion TAM by 2028 in its existing states alone and highlighted how legalized states are larger and growing faster than the firm originally anticipated," explained the analysts. "DKNG also introduced long-term adj. EBITDA targets for its existing markets pointing to 2026 adj. EBITDA of ~$1.4 billion and 2028 adj. EBITDA of ~$2.1 billion."