This post was originally published on this site
Wells Fargo analysts said the firm is raising the stock after assessing the company’s potential 2025E EBITDA goal.
“EBITDA is inflecting more quickly/steeply than we previously envisioned, and we expect its op. momentum to continue,” they wrote in a note to clients.
“The bull thesis is playing out: DKNG’s mkt share is growing (2Q est GGR share +8-9 pts y/y, +6-7 pts ex-GNOG), structural hold is rapidly increasing (tracking +100bps y/y), and costs remain in check,” they added.
Furthermore, Wells Fargo believes DKNG’s EBITDA estimates will continue to move higher, “resulting in a more palatable valuation.”
