In a belated response to DraftKings’s Nov. 14 investor presentation, J.P. Morgan analyst Joseph Greff hiked his expectations and price target for the stock. He ratcheted up the latter from $39 per share to $45. DraftKings was trading at $38.68 at the time.
Greff was inspired by DraftKings’s raising its cash-flow guidance to between $900 million and $1 billion in 2025 and $1.4 billion in 2026. He opined that the revisions “should reset consensus expectations higher at current legalization levels alone.”
Continued Greff, “We view DKNG’s outlook as indicative of strong underlying momentum in existing states … and a significantly improved product that is driving stronger customer acquisition, higher hold rates, and greater market share in newer states.”
In accordance with DraftKings, Greff raised his 2025 cash-flow target to $950 million from $840 million and his 2026 projection from $1.2 billion to $1.4 billion. He kept his 2023-24 estimates as before.
Further encouraging news came from DraftKings, which indicated that states that launched sports betting before 2021 were growing handle by 30 percent a year and net revenue by 53 percent. Greff continued to expect inceptions of sports betting in Vermont and North Carolina by July 2024. DraftKings’s total addressable market is estimated to be between $26.7 billion and $29.7 billion.