Analysts Cut DraftKings Price Targets to $50 and $35 on Slowing Handle Trends
Canaccord Genuity lowered its DraftKings price target to $50 from $54 with a Buy rating, highlighting decelerating state handle trends but noting Q4 2025 hold strength and iGaming rebound. Rothschild & Co Redburn trimmed its target to $35 from $37 and forecasts revenue growth moderation in 2026, expecting the World Cup to spur sports betting volume.
1. Canaccord Price Target Adjustment
Canaccord Genuity lowered its DraftKings price target to $50 from $54 with a Buy rating, citing decelerating state handle trends in December and January that pressured digital gambling stocks.
2. Q4 2025 Performance
Despite weaker handle metrics, DraftKings delivered broadly in-line Q4 2025 results thanks to stronger hold percentages and a rebound in iGaming growth, offsetting the softer volume.
3. Rothschild & Co Redburn Target Revision
Rothschild & Co Redburn cut its DraftKings price target to $35 from $37 with a Neutral rating, reducing sector estimates and anticipating moderated revenue growth for 2026.
4. Outlook and Catalysts
Analysts believe lower expectations and reset valuations offer an entry point for investors, with the upcoming FIFA World Cup expected to drive a significant uptick in online sports betting activity.