DraftKings Inc. saw its shares close 2.7% higher on Thursday, continuing its recent rally, following positive adjustments from two analysts who raised their price targets for the online-gambling company.
Positive Outlook for Quarterly Earnings
JMP Securities analyst Jordan Bender expressed optimism regarding DraftKings’ upcoming June-quarter earnings report. Bender believes that the results will showcase the company’s strong performance in terms of revenue. Moreover, a decrease in promotional activity is expected to benefit DraftKings by improving its profitability. Bender also mentioned that the online sports-betting industry has experienced historically low levels of promotions, indicating a positive trend for the company.
Projected Event Outcomes and Decreasing Competition Drive Confidence
BTIG’s Clark Lampen stated that DraftKings’ future results may be positively influenced by favorable outcomes in upcoming events. Lampen also noted that DraftKings seems to be capitalizing on shifting parlay mixes and a decline in competitive pressure. Based on these factors, Lampen increased his target price for DraftKings shares.
Continued Momentum in Stock Performance
DraftKings’ stock rally on Thursday follows a 5.3% gain during Wednesday’s trading session, which was prompted by an upgrade from BofA Securities. Remarkably, the company’s stock has risen for five consecutive trading sessions. Since the start of the year 2023, DraftKings has experienced a significant surge of 175%, outperforming the S&P 500 index (+0.85%), which has risen 17% during the same period.