DraftKings’ stocks rose by around 5% after Bank of America analyst Julie Hoover raised the company’s rating from “Neutral” to “Buy”, while maintaining its US$27 price target. The move followed a 47% decline in the stock over the past year.
Hoover identified DraftKings’ prediction market offerings as a key factor behind the revised outlook. The Bank of America estimates that, if markets remain viable, the business could generate around US$400 million in fees in 2027, with an additional US$200 million to US$400 million potentially coming from market-making.
DraftKings had reported rapid growth in its prediction market business. The operator’s 2Q26 investment letter highlighted that over 600,000 customers had used its DraftKings Predictions platform by August this year.
