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DraftKings
stock was rising Friday as Wall Street analysts share their optimistic takes on the solid third-quarter financial results posted by the online sports betting company late Thursday.
Benchmark analyst Mike Hickey maintained his Buy rating on the stock and $37 price target following the earnings report released after the close on Thursday. In a research note Friday, Hickey said that the company “has effectively acquired new customers and maintained high levels of customer engagement.”
This bullish take comes after
DraftKings
said after the close on Friday that its monthly unique players increased to 2.3 million in the quarter, which was a 40% jump from the prior year. Average revenue per monthly unique players was $114, a 14% increase.
DraftKings
also reported a third-quarter loss of 61 cents a share on revenue of $790 million after the market closed on Thursday. Analysts surveyed by FactSet were expecting the company to report a loss of 69 cents a share on revenue of $704.9 million.
In the same period last year, DraftKings posted a loss of $1 a share on revenue of $501.9 million.
“We continue to highlight DKNG as one of the best (if not the best) growth stories in gaming today and have strong conviction that DKNG will be a LT [long-term] winner in interactive,” Truist Securities analyst Barry Jonas, who rates the stock as a Buy with a $44 price target, said in a note Thursday.
The sports betting app also raised its 2023 revenue guidance to be between $3.67 billion to $3.72 billion, compared with previous forecasts of $3.46 billion to $3.54 billion.
The guidance raise comes even as the competitive environment is becoming more saturated.
Penn Entertainment
(PENN) announced in August that it had gained the exclusive rights to
Walt Disney’s
(DIS) ESPN Bet trademark for an initial 10-year term.
“Our fantastic third quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization,” Chief Executive Jason Robins said in the earnings release.
Write to Angela Palumbo at [email protected]
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