Grid-iron and grid-lock will be talking points as investors in Draftkings Inc (NASDAQ:DKNG) later today look for color commentary into the ongoing state-by-state opening of legal sports betting.
Perhaps more pertinent will be guidance on DraftKing’s route to profitability, according to stockbroker Canaccord, which also sees the recent NFL playoff and Superbowl results as a boon for the bookie.
“Favorable NFL outcomes, contributions from recently launched states, and growing engagement with higher-margin parlays likely contributed to another quarter of robust growth for DraftKings, although investors will be focused on any updates to the company’s timeline to reach profitability, as it has previously stated its goal of generating positive EBITDA in 4Q23 and being breakeven or better for FY24,” the stockbroker said in a note.
Canaccord added: “Management may also provide its thoughts on recent legislative activity, with lawmakers in both GA and TX introducing OSB bills while online casino legislation has been discussed in NY, MD, IN, IL and NH.”
The broker has a ‘Buy’ rating for DraftKings with a price target pitched at US$28.00, suggesting some 56% upside to the current price of US$17.99.
In New York ahead of fourth-quarter results later today DraftKings stock is up a sliver more than 1% for the morning.
Wall Street analysts expect to see US$801 million of fourth-quarter sales, with a $0.46 per share loss anticipated.
DraftKings, meanwhile, has previously set its full-year guidance at US$2.16 billion to US$2.19 billion of revenue.