Citi Reiterates Buy Rating on DraftKings Inc. (DKNG)

Citi analyst Steven Sheeckutz reiterated a Buy rating and $58.00 price target on DraftKings Inc. (NASDAQ: DKNG).

The analyst comments "Yesterday, Flutter announced it will acquire Boyd Gaming’s 5% equity interest in FanDuel at an implied valuation of ~$31 billion (see announcement here). The agreement also included revisions to the existing market-access agreements between the two companies. Based on consensus estimates, we estimate the deal values FanDuel at ~17.4x 2026 EV-EBITDA Based on yesterday’s close, we estimate DKNG’s prevailing EV-EBITDA multiple is trading at ~7% discount to the implied FanDuel valuation. We note, however, the FanDuel transaction is not an arm’s length transaction given the existing strategic partnership between the two firms and would suspect there would be scope for FanDuel to command a higher valuation in an arm’s length deal."

For an analyst ratings summary and ratings history on DraftKings Inc. click here. For more ratings news on DraftKings Inc. click here.

Shares of DraftKings Inc. closed at $44.57 yesterday.

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