TLDR Benchmark reiterated a Buy rating on DKNG with a $29 price target; stock currently trades at $25.15 DKNG has dropped 45% over the past six months, hitting a 52-week low of $21.01 New York online sports betting revenue surged 68% year-over-year in Week 9 despite a 10% handle decline Director Harry Sloan bought 100,000 DKNG shares for ~$2.19M in February; insiders own 51.19% of the company 25 of 31 analysts rate DKNG a Buy, with an average price target of $37.19
DKNG has had a rough ride. The stock has fallen 45% over the past six months, sitting at $25.15 as of Friday — a long way from its 52-week high of $48.78.
DraftKings Inc., DKNG
Despite that slide, Benchmark analyst Mike Hickey reiterated a Buy rating and $29 price target on the stock. InvestingPro has placed DKNG on its Most Undervalued list.
The broader analyst community agrees with that view. Of 31 analysts covering the stock, 25 rate it a Buy, four a Hold, and two a Sell. The average price target sits at $37.19.
That gap between current price and average target is hard to ignore.
Recent New York sports betting data gave some reason for optimism. In Week 9, overall handle fell 10% year-over-year, but revenue surged 68%, driven by a hold rate of 9.0% — up 420 basis points from 4.8% the prior year.
DraftKings itself saw handle drop 27.7% year-over-year in that same period. But revenue jumped 442.1% year-over-year as hold expanded to 8.8%, compared to just 1.2% a year ago. That prior-year figure was an unusually low comp.
Competitor PENN saw handle down 5.1% and revenue up 110.1%, with hold climbing to 10.2%. The numbers point to a good week for operators across the board.
Insider and