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HomeMarketDraftKings Stock Rises After Strong Quarter. Analysts Are Upbeat.

DraftKings Stock Rises After Strong Quarter. Analysts Are Upbeat.

DraftKings raised its forecast for 2023 revenue.

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Scott Eisen/Getty Images for DraftKings

stock was rising Friday after analysts weighed in, citing strong results and positive prospects for the gambling stock.  

BTIG analyst Clark Lampen upgraded his rating on
(ticker: DKNG) to Buy from Neutral, with a price target of $24, while the shares jumped 15% to $20.41. So far this year, the stock has soared nearly 80%.

Thursday, the company posted revenue of $855 million and a loss of 53 cents a share for its fourth quarter, while Wall Street had expected $803 million in revenue and a loss of 62 cents a share, according to FactSet.

also raised its forecast for 2023 revenue to a range of $2.85 billion to $3.05 billion, well above the $2.24 billion recorded for 2022, as additional states legalize sports gambling.

“The positive implications of the 4Q print aren’t fully reflected in the stock as the fundamental levers for further beats are in place for ’23/24+,” wrote Lampen in a research note Friday. He said DraftKings is performing better both because more people are gambling online and because management has reduced spending on marketing. 

Lampen sees keeping a handle on marketing spending as improving earnings and allowing the company to keep offering discounts without derailing efforts to boost margins.

“Additionally, with $700M+ in cash and line of sight to positive cash flow, we could see DKNG tap its balance sheet to enhance the business via acquisition,” he wrote, saying he expects DraftKings to consolidate its leading position in sports betting.

Susquehanna analyst Joseph Stauff was also optimistic on the stock, raising his price target to $26 from $24. He said in a research note Friday that the company’s “best earnings print shows [the business] model scaling to profitability.”

Write to Emily Dattilo at


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