Deutsche Bank Cuts DraftKings Price Target to $26 Citing Slowing Handle Growth
Deutsche Bank cut DraftKings’ 12-month price target to $26 from $36, citing 2026 guidance at the low end of expectations. The analyst pointed to increased promotional spending and slowing handle growth, while the average Street target remains $37.
1. Price Target Revision by Deutsche Bank
Deutsche Bank reduced its 12-month price target for DraftKings from $36 to $26 after reviewing the company’s 2026 guidance, which it judged to be at the low end of broker expectations. This represents a nearly 28% reduction and signals analyst concern over the company’s near-term growth trajectory.
2. Promotional Spending and Handle Growth Pressure
The downgrade reflects mounting costs as DraftKings boosts promotional spending to attract users, combined with decelerating handle growth – the total dollar amount wagered on its platform. These factors weighed on revenue projections and margin outlook, prompting the more conservative valuation estimate.