News: DraftKings Stock Has Doubled in 2023. One Analyst Sees More Upside

DraftKings shares experienced a rise after receiving an upgrade from an analyst who believes there is potential for further growth for the sports-betting company. UBS analyst Robin Farley upgraded DraftKings stock to Buy from Neutral and increased the price target to $30 from $19. Despite the stock already doubling in 2023, Farley believes there is room for further upside due to the company's expansion into new states at a faster rate. Farley adjusted revenue estimates for 2023 to $3.19 billion, 2024 to $3.94 billion, and 2025 to $4.81 billion, reflecting the higher guidance provided by DraftKings in its first-quarter report. Additionally, Farley anticipates revenue to grow at a compound annual growth rate of over 20% from 2023 to 2026, with 2026 potentially being the first year of consistent profitability. The growth is attributed to DraftKings' expansion into new states, improvements in structural hold through a higher mix of parlay and in-play bets, and higher gross gaming revenue per player.