BofA Maintains Neutral on DraftKings Ahead of Investor Day

Core Viewpoint - BofA Securities maintains a Neutral rating and a $27 price target on DraftKings Inc. ahead of the company's Investor Day on March 2 [1] Group 1: Key Focus Areas for Investor Day - The event is expected to address four main topics: DraftKings Predictions opportunity and medium-term financial targets; total addressable market (TAM) for prediction markets and updated TAM for core online sports betting (OSB) and iGaming; revised revenue and profit targets for 2028 and potentially 2030; and updated data on customer acquisition and retention trends amid concerns regarding potential cannibalization of the core business by prediction markets [2] Group 2: Financial Projections - DraftKings previously set a target for 2028 revenue of $7.1 billion and EBITDA of $2.1 billion. BofA anticipates the company may increase its revenue outlook to between $8.5 billion and $9.1 billion, with approximately $8.2 billion from core sports betting and around $650 million from prediction market fees [3] - However, BofA expects the 2028 EBITDA guidance may be adjusted lower to a range of $1.5 billion to $1.7 billion, with about $1.5 billion from core operations and $100 million to $150 million from Predictions [4]