Jeffries Thinks DraftKings (DKNG) Share Decline Is Nearing End, Keeps Buy Rating

Company Overview - DraftKings Inc. (NASDAQ:DKNG) is a gaming company that provides online sports betting, online casino, and fantasy sports products, founded in December 2011 and based in Boston, Massachusetts [7] Financial Performance - DraftKings reported a Q4 2025 attributable net income of $136.4 million, a significant improvement from a net loss of $135.9 million in Q4 2024, driven by a 12.3% year-over-year increase in sportsbook volume and a 63.8% year-over-year increase in sportsbook revenue [3][4] - The company’s management expects 2026 revenue to be between $6.5 billion and $6.9 billion, which is below the consensus estimate of $7.29 billion, with an anticipated EBITDA increase of $700 million to $900 million [4] Analyst Insights - Jefferies analyst David Katz reduced the target price for DraftKings by 8.0% to $46 from $50 but maintained a buy recommendation, citing conservative guidance for 2026 due to costs associated with new product development and new location launches [1] - Katz believes that the decline in DraftKings' share price, which has fallen approximately 35% to 40% year-to-date, is nearing its end, and he expects US sports betting demand to continue growing at its current pace, with DraftKings remaining a leader in the industry [2]