Analysts rate DraftKings Inc. (DKNG:NSD) with a Strong Buy rating and a $23 target

BNP Paribas rates DraftKings Stock Forecast as Underperform.

Based on the DraftKings Stock Forecast from 18 analysts, the average analyst DKNG stock price target is USD 23.92 over the next 12 months. DraftKings Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of DraftKings stock forecast is Bearish, which is based on 1 positive signals and 7 negative signals. At the last closing, DraftKings Inc’s stock price was USD 14.28DraftKings Inc’s stock price has changed by -1.12% over the past week, -3.35% over the past month and -70.79% over the last year.

 

About DraftKings Inc. (DKNG:NSD):

DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

 

What we don’t like:

High volatility

The total returns for DKNG stock price are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

DKNG stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

DKNG stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

DKNG stock price had negative total free cash flow in the most recent four quarters.