On Wednesday, UBS reiterated its Buy rating on DraftKings Inc. (NASDAQ:DKNG) with a steady price target of $60.00. The firm's outlook remains positive as DraftKings' new Chief Financial Officer is perceived to be in line with the company's ongoing strategy. The CEO's commitment to providing more precise future guidance was also noted, indicating a shift from the expectation that the company would consistently exceed its own forecasts.
The sports betting operator is anticipated to host an investor day in early 2025 to revise the long-term goals that were initially set in late 2023. This event is expected to give shareholders and potential investors a clearer picture of the company's direction and financial targets.
UBS also predicts that DraftKings will announce a share repurchase program alongside its second-quarter results. This move would potentially signal confidence in the company's financial health and future prospects, as share repurchase programs are often interpreted as a sign that a company believes its stock is undervalued.
Furthermore, the acquisition of Jackpocket, a third-party app providing lottery ticket sales, is projected to be completed sooner than originally anticipated. This development could have positive implications for DraftKings' expansion and diversification strategies.
InvestingPro Insights
As DraftKings Inc. (NASDAQ:DKNG) continues to make strategic moves, real-time data from InvestingPro provides valuable context for investors. The company's market capitalization stands strong at $20.66 billion, reflecting its significant presence in the online betting industry. With revenue growth reaching 57% in the last twelve months as of Q1 2024, DraftKings showcases its ability to expand its financial base amidst a competitive market.
InvestingPro Tips highlight that analysts are optimistic about DraftKings' future, expecting net income and sales to grow this year. This aligns with UBS's positive stance and the anticipation of more precise future guidance from the company's leadership. Additionally, with 4 analysts revising their earnings upwards for the upcoming period, it's clear that there is a positive sentiment surrounding the company's performance prospects.
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