DraftKings Gains Over 3% on BMO’s $50 Price Target and Analyst Upgrades
DraftKings stock jumped over 3% after BMO raised its price target from $42 to $50 and three analysts reaffirmed buy ratings at $35–$38. BMO projects a 15% five-year CAGR to $67.5 billion, forecasts EBITDA margins above 30% and highlights a Super App plus $10 billion prediction markets opportunity with 60–80% margins.
1. Analyst Upgrades and Price Targets
BMO Capital raised its target from $42 to $50 with an Outperform rating, while Citizens, Needham and BTIG reaffirmed buy ratings at $35–$38, providing fresh momentum for the stock during a broader market selloff.
2. Long-Term Growth Projections
BMO projects a 15% five-year CAGR for DraftKings’ total addressable market to $67.5 billion and anticipates EBITDA margins exceeding 30% in the long run.
3. Super App and Prediction Markets Opportunity
Management plans to merge its Sportsbook, iGaming and Predictions into a unified Super App to boost cross-selling and lower acquisition costs, and sees prediction markets generating about $10 billion in gross revenue with potential 60–80% margins.
4. Technical Trend Overview
Shares have rallied above the 20-day simple moving average but remain below key 50-, 100- and 200-day averages; the RSI sits near neutral at 38 and MACD indicates short-term bullish momentum amid an ongoing bearish trend.