DraftKings 'Well Positioned For Double-Digit Revenue Growth,' Analysts Say

Core Viewpoint - DraftKings is positioned for strong growth in 2025, supported by positive fourth-quarter results, a transition to profitability, and favorable market conditions [1][4][5]. Financial Performance - DraftKings reported a 37% year-over-year growth in monthly unique payers in the fourth quarter, indicating strong customer acquisition and engagement [3]. - The company achieved a full year of positive adjusted EBITDA and free cash flow, highlighting its financial health [2]. Analyst Ratings and Price Targets - Macquarie analyst Chad Beynon maintained an Outperform rating and raised the price target from $50 to$60 [1]. - Needham analyst Bernie McTernan reiterated a Buy rating and increased the price target from $60 to$65 [1]. Market Position and Strategy - DraftKings is viewed as the best large-cap play in the US online market due to its first-mover advantage, strong brand recognition among younger demographics, and superior technology [2]. - The company has a sustainable customer acquisition strategy that is expected to maintain its leading position in all states [8]. Future Outlook - Analysts expect DraftKings to achieve double-digit revenue growth and potentially double adjusted EBITDA by 2027 [5]. - The company is anticipated to benefit from lower promotional activity, improved hold rates, and additional state legalizations as catalysts for growth in 2025 [3][7]. Stock Performance - DraftKings stock has seen a 40% increase year-to-date in 2025, although it experienced a 5.3% decline to $50.64 recently [8].