On Monday, Citi updated its stance on DraftKings Inc. (NASDAQ:DKNG), increasing the price target to $57.00 from the previous $53.00 while reiterating a Buy rating on the stock. The adjustment follows DraftKings' reported earnings for the first quarter of 2024, which surpassed Wall Street's expectations in terms of both revenue and adjusted EBITDA.
The analyst from Citi stated, "DraftKings (DKNG) reported 1Q24 revenue and Adj. EBITDA above the Street. In addition, the firm raised its 2024 outlook." The first quarter's positive outcome and the year's guidance have been key factors in Citi's decision to raise the price target.
The analyst's comments underscore the rationale behind the updated target price, attributing the change to the company's current performance and future expectations. As DraftKings continues to execute its business strategy, investors and market watchers will likely monitor its progress about Citi's projections.
InvestingPro Insights
In light of Citi's recent price target increase for DraftKings Inc. (NASDAQ:DKNG), an examination of real-time data and InvestingPro Tips offers additional context for investors considering the stock. According to InvestingPro, analysts are optimistic about DraftKings' potential, expecting net income growth and sales growth in the current year. This aligns with Citi's positive outlook and may reinforce investor confidence in the stock's performance.
InvestingPro Data shows DraftKings with a market capitalization of $19.92 billion and a striking revenue growth of 57% over the last twelve months as of Q1 2024. Despite the company not being profitable over the last twelve months, analysts predict that DraftKings will turn profitable this year. The stock's price movements have been quite volatile, yet it has achieved a high return of 70.14% over the past year, which may interest investors looking for growth potential in their portfolio.
For those seeking a deeper dive into DraftKings' financial health and future prospects, InvestingPro provides additional tips, including insights on the company's moderate level of debt and valuation multiples. Interested readers can find further analysis and tips on InvestingPro, with 12 additional tips available. To enhance the value of a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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